Republic of the Philippines
Congress of the Philippines
Metro Manila
Eighth Congress
Republic Act No. 7160 October 10, 1991
Setion 41(b) Amended by RA 8553
Setion 43 Amended by RA 8553
AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF
1991
Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled::
BOOK I
GENERAL PROVISIONS
TITLE I
BASIC PRINCIPLES
CHAPTER I
The Code: Policy and Application
Section 1. Title. - This Act shall be known and cited as the "Local
Government Code of 1991".
Section 2. Declaration of Policy. -
(a) It is hereby declared the policy of the State that the territorial and
political subdivisions of the State shall enjoy genuine and meaningful
local autonomy to enable them to attain their fullest development as
self-reliant communities and make them more effective partners in
the attainment of national goals. Toward this end, the State shall
provide for a more responsive and accountable local government
structure instituted through a system of decentralization whereby
local government units shall be given more powers, authority,
responsibilities, and resources. The process of decentralization shall
proceed from the national government to the local government units.
(b) It is also the policy of the State to ensure the accountability of
local government units through the institution of effective
mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national agencies
and offices to conduct periodic consultations with appropriate local
government units, nongovernmental and people's organizations,
and other concerned sectors of the community before any project or
program is implemented in their respective jurisdictions.1awphil.net
Section 3. Operative Principles of Decentralization. - The formulation
and implementation of policies and measures on local autonomy
shall be guided by the following operative principles:
(a) There shall be an effective allocation among the different local
government units of their respective powers, functions,
responsibilities, and resources;
(b) There shall be established in every local government unit an
accountable, efficient, and dynamic organizational structure and
operating mechanism that will meet the priority needs and service
requirements of its communities;
(c) Subject to civil service law, rules and regulations, local officials
and employees paid wholly or mainly from local funds shall be
appointed or removed, according to merit and fitness, by the
appropriate appointing authority;
(d) The vesting of duty, responsibility, and accountability in local
government units shall be accompanied with provision for
reasonably adequate resources to discharge their powers and
effectively carry out their functions: hence, they shall have the power
to create and broaden their own sources of revenue and the right to
a just share in national taxes and an equitable share in the proceeds
of the utilization and development of the national wealth within their
respective areas;
(e) Provinces with respect to component cities and municipalities,
and cities and municipalities with respect to component barangays,
shall ensure that the acts of their component units are within the
scope of their prescribed powers and functions;
(f) Local government units may group themselves, consolidate or
coordinate their efforts, services, and resources commonly
beneficial to them;
(g) The capabilities of local government units, especially the
municipalities and barangays, shall be enhanced by providing them
with opportunities to participate actively in the implementation of
national programs and projects;
(h) There shall be a continuing mechanism to enhance local
autonomy not only by legislative enabling acts but also by
administrative and organizational reforms;
(i) Local government units shall share with the national government
the responsibility in the management and maintenance of ecological
balance within their territorial jurisdiction, subject to the provisions of
this Code and national policies;
(j) Effective mechanisms for ensuring the accountability of local
government units to their respective constituents shall be
strengthened in order to upgrade continually the quality of local
leadership;
(k) The realization of local autonomy shall be facilitated through
improved coordination of national government policies and
programs an extension of adequate technical and material
assistance to less developed and deserving local government units;
(l) The participation of the private sector in local governance,
particularly in the delivery of basic services, shall be encouraged to
ensure the viability of local autonomy as an alternative strategy for
sustainable development; and
(m) The national government shall ensure that decentralization
contributes to the continuing improvement of the performance of
local government units and the quality of community life.
Section 4. Scope of Application. - This Code shall apply to all
provinces, cities, municipalities, barangays, and other political
subdivisions as may be created by law, and, to the extent herein
provided, to officials, offices, or agencies of the national government.
Section 5. Rules of Interpretation. - In the interpretation of the
provisions of this Code, the following rules shall apply:
(a) Any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any question
thereon shall be resolved in favor of devolution of powers and of the
lower local government unit. Any fair and reasonable doubt as to the
existence of the power shall be interpreted in favor of the local
government unit concerned;
(b) In case of doubt, any tax ordinance or revenue measure shall be
construed strictly against the local government unit enacting it, and
liberally in favor of the taxpayer. Any tax exemption, incentive or
relief granted by any local government unit pursuant to the
provisions of this Code shall be construed strictly against the person
claiming it.
(c) The general welfare provisions in this Code shall be liberally
interpreted to give more powers to local government units in
accelerating economic development and upgrading the quality of life
for the people in the community;
(d) Rights and obligations existing on the date of effectivity of this
Code and arising out of contracts or any other source of presentation
involving a local government unit shall be governed by the original
terms and conditions of said contracts or the law in force at the time
such rights were vested; and
(e) In the resolution of controversies arising under this Code where
no legal provision or jurisprudence applies, resort may be had to the
customs and traditions in the place where the controversies take
place.
CHAPTER II
General Powers and Attributes of Local Government Units
Section 6. Authority to Create Local Government Units. - A local
government unit may be created, divided, merged, abolished, or its
boundaries substantially altered either by law enacted by Congress
in the case of a province, city, municipality, or any other political
subdivision, or by ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod concerned in the case of
a barangay located within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this Code.
Section 7. Creation and Conversion. - As a general rule, the creation
of a local government unit or its conversion from one level to another
level shall be based on verifiable indicators of viability and projected
capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards,
to provide for all essential government facilities and services and
special functions commensurate with the size of its population, as
expected of the local government unit concerned;
(b) Population. - It shall be determined as the total number of
inhabitants within the territorial jurisdiction of the local government
unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises two or
more islands or is separated by a local government unit independent
of the others; properly identified by metes and bounds with technical
descriptions; and sufficient to provide for such basic services and
facilities to meet the requirements of its populace.
Compliance with the foregoing indicators shall be attested to by the
Department of Finance (DOF), the National Statistics Office (NSO),
and the Lands Management Bureau (LMB) of the Department of
Environment and Natural Resources (DENR).
Section 8. Division and Merger. - Division and merger of existing
local government units shall comply with the same requirements
herein prescribed for their creation: Provided, however, That such
division shall not reduce the income, population, or land area of the
local government unit or units concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the
income classification of the original local government unit or units
shall not fall below its current classification prior to such division.
The income classification of local government units shall be updated
within six (6) months from the effectivity of this Code to reflect the
changes in their financial position resulting from the increased
revenues as provided herein.
Section 9. Abolition of Local Government Units. - A local government
unit may be abolished when its income, population, or land area has
been irreversibly reduced to less than the minimum standards
prescribed for its creation under Book III of this Code, as certified by
the national agencies mentioned in Section 7 hereof to Congress or
to the sangguniang concerned, as the case may be.
The law or ordinance abolishing a local government unit shall specify
the province, city, municipality, or barangay with which the local
government unit sought to be abolished will be incorporated or
merged.
Section 10. Plebiscite Requirement. - No creation, division, merger,
abolition, or substantial alteration of boundaries of local government
units shall take effect unless approved by a majority of the votes cast
in a plebiscite called for the purpose in the political unit or units
directly affected. Said plebiscite shall be conducted by the
Commission on Elections (COMELEC) within one hundred twenty
(120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another
date.
Section 11. Selection and Transfer of Local Government Site,
Offices and Facilities.
(a) The law or ordinance creating or merging local government units
shall specify the seat of government from where governmental and
corporate services shall be delivered. In selecting said site, factors
relating to geographical centrality, accessibility, availability of
transportation and communication facilities, drainage and sanitation,
development and economic progress, and other relevant
considerations shall be taken into account.
(b) When conditions and developments in the local government unit
concerned have significantly changed subsequent to the
establishment of the seat of government, its sanggunian may, after
public hearing and by a vote of two-thirds (2/3) of all its members,
transfer the same to a site better suited to its needs. Provided,
however, That no such transfer shall be made outside the territorial
boundaries of the local government unit concerned.
The old site, together with the improvements thereon, may be
disposed of by the sale or lease or converted to such other use as
the sangguniang concerned may deem beneficial to the local
government unit concerned and its inhabitants.
(c) Local government offices and facilities shall not be transferred,
relocated, or converted to other uses unless public hearings are first
conducted for the purpose and the concurrence of the majority of all
the members of the sanggunian concerned is obtained.
Section 12. Government Centers. - Provinces, cities, and
municipalities shall endeavor to establish a government center
where offices, agencies, or branches of the national government,
local government units, or government-owned or controlled
corporations may, as far as practicable, be located. In designating
such a center, the local government unit concerned shall take into
account the existing facilities of national and local agencies and
offices which may serve as the government center as contemplated
under this Section. The national government, local government unit
or government-owned or controlled corporation concerned shall
bear the expenses for the construction of its buildings and facilities
in the government center.
Section 13. Naming of Local Government Units and Public Places,
Streets and Structures. -
(a) The sangguniang panlalawigan may, in consultation with the
Philippine Historical Commission (PHC), change the name of the
following within its territorial jurisdiction:
(1) Component cities and municipalities, upon the recommendation
of the sanggunian concerned;
(2) Provincial roads, avenues, boulevards, thoroughfares, and
bridges;
(3) Public vocational or technical schools and other post-secondary
and tertiary schools;
(4) Provincial hospitals, health centers, and other health facilities;
and
(5) Any other public place or building owned by the provincial
government.
(b) The sanggunian of highly urbanized cities and of component
cities whose charters prohibit their voters from voting for provincial
elective officials, hereinafter referred to in this Code as independent
component cities, may, in consultation with the Philippine Historical
Commission, change the name of the following within its territorial
jurisdiction:
(1) City barangays, upon the recommendation of the sangguniang
barangay concerned;
(2) City roads, avenues, boulevards, thoroughfares, and bridges;
(3) Public elementary, secondary and vocational or technical
schools, community colleges and non-chartered colleges;
(4) City hospitals, health centers and other health facilities; and
(5) Any other public place or building owned by the city government.
(c) The sanggunians of component cities and municipalities may, in
consultation with the Philippine Historical Commission, change the
name of the following within its territorial jurisdiction:
(1) City and municipal barangays, upon recommendation of the
sangguniang barangay concerned;
(2) City, municipal and barangay roads, avenues, boulevards,
thoroughfares, and bridges;
(3) City and municipal public elementary, secondary and vocational
or technical schools, post- secondary and other tertiary schools;
(4) City and municipal hospitals, health centers and other health
facilities; and
(5) Any other public place or building owned by the municipal
government.
(d) None of the foregoing local government units, institutions, places,
or buildings shall be named after a living person, nor may a change
of name be made unless for a justifiable reason and, in any case,
not oftener than once every ten (10) years. The name of a local
government unit or a public place, street or structure with historical,
cultural, or ethnic significance shall not be changed, unless by a
unanimous vote of the sanggunian concerned and in consultation
with the PHC.
(e) A change of name of a public school shall be made only upon
the recommendation of the local school board concerned.
(f) A change of name of public hospitals, health centers, and other
health facilities shall be made only upon the recommendation of the
local health board concerned.
(g) The change of name of any local government unit shall be
effective only upon ratification in a plebiscite conducted for the
purpose in the political unit directly affected.
(h) In any change of name, the Office of the President, the
representative of the legislative district concerned, and the Bureau
of Posts shall be notified.
Section 14. Beginning of Corporate Existence. - When a new local
government unit is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a
majority of the members of its sanggunian, unless some other time
is fixed therefor by the law or ordinance creating it.
Section 15. Political and Corporate Nature of Local Government
Units. - Every local government unit created or recognized under this
Code is a body politic and corporate endowed with powers to be
exercised by it in conformity with law. As such, it shall exercise
powers as a political subdivision of the national government and as
a corporate entity representing the inhabitants of its territory.
Section 16. General Welfare. - Every local government unit shall
exercise the powers expressly granted, those necessarily implied
therefrom, as well as powers necessary, appropriate, or incidental
for its efficient and effective governance, and those which are
essential to the promotion of the general welfare. Within their
respective territorial jurisdictions, local government units shall
ensure and support, among other things, the preservation and
enrichment of culture, promote health and safety, enhance the right
of the people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and
technological capabilities, improve public morals, enhance
economic prosperity and social justice, promote full employment
among their residents, maintain peace and order, and preserve the
comfort and convenience of their inhabitants.
Section 17. Basic Services and Facilities. -
(a) Local government units shall endeavor to be self-reliant and shall
continue exercising the powers and discharging the duties and
functions currently vested upon them. They shall also discharge the
functions and responsibilities of national agencies and offices
devolved to them pursuant to this Code. Local government units
shall likewise exercise such other powers and discharge such other
functions and responsibilities as are necessary, appropriate, or
incidental to efficient and effective provisions of the basic services
and facilities enumerated herein.
(b) Such basic services and facilities include, but are not limited to,
the following:
(1) For Barangay:
(i) Agricultural support services which include planting materials
distribution system and operation of farm produce collection and
buying stations;
(ii) Health and social welfare services which include maintenance of
barangay health center and day-care center;
(iii) Services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection;
(iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges and water supply
systems;
(vi) Infrastructure facilities such as multi-purpose hall, multipurpose
pavement, plaza, sports center, and other similar facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
(2) For a Municipality:
(i) Extension and on-site research services and facilities related to
agriculture and fishery activities which include dispersal of livestock
and poultry, fingerlings, and other seedling materials for
aquaculture; palay, corn, and vegetable seed farms; medicinal plant
gardens; fruit tree, coconut, and other kinds of seedling nurseries;
demonstration farms; quality control of copra and improvement and
development of local distribution channels, preferably through
cooperatives; interbarangay irrigation system; water and soil
resource utilization and conservation projects; and enforcement of
fishery laws in municipal waters including the conservation of
mangroves;
ii) Pursuant to national policies and subject to supervision, control
and review of the DENR, implementation of community-based
forestry projects which include integrated social forestry programs
and similar projects; management and control of communal forests
with an area not exceeding fifty (50) square kilometers;
establishment of tree parks, greenbelts, and similar forest
development projects;
(iii) Subject to the provisions of Title Five, Book I of this Code, health
services which include the implementation of programs and projects
on primary health care, maternal and child care, and communicable
and non-communicable disease control services, access to
secondary and tertiary health services; purchase of medicines,
medical supplies, and equipment needed to carry out the services
herein enumerated;
(iv) Social welfare services which include programs and projects on
child and youth welfare, family and community welfare, women's
welfare, welfare of the elderly and disabled persons; community-
based rehabilitation programs for vagrants, beggars, street children,
scavengers, juvenile delinquents, and victims of drug abuse;
livelihood and other pro-poor projects; nutrition services; and family
planning services;
(v) Information services which include investments and job
placement information systems, tax and marketing information
systems, and maintenance of a public library;
(vi) Solid waste disposal system or environmental management
system and services or facilities related to general hygiene and
sanitation;
(vii) Municipal buildings, cultural centers, public parks including
freedom parks, playgrounds, and other sports facilities and
equipment, and other similar facilities;
(viii) Infrastructure facilities intended primarily to service the needs
of the residents of the municipality and which are funded out of
municipal funds including but not limited to, municipal roads and
bridges; school buildings and other facilities for public elementary
and secondary schools; clinics, health centers and other health
facilities necessary to carry out health services; communal irrigation,
small water impounding projects and other similar projects; fish
ports; artesian wells, spring development, rainwater collectors and
water supply systems; seawalls, dikes, drainage and sewerage, and
flood control; traffic signals and road signs; and similar facilities;
(ix) Public markets, slaughterhouses and other municipal
enterprises;
(x) Public cemetery;
(xi) Tourism facilities and other tourist attractions, including the
acquisition of equipment, regulation and supervision of business
concessions, and security services for such facilities; and
(xii) Sites for police and fire stations and substations and municipal
jail;
(3) For a Province:
(i) Agricultural extension and on-site research services and facilities
which include the prevention and control of plant and animal pests
and diseases; dairy farms, livestock markets, animal breeding
stations, and artificial insemination centers; and assistance in the
organization of farmers and fishermen's cooperatives, and other
collective organizations, as well as the transfer of appropriate
technology;
(ii) Industrial research and development services, as well as the
transfer of appropriate technology;
(iii) Pursuant to national policies and subject to supervision, control
and review of the DENR, enforcement of forestry laws limited to
community-based forestry projects, pollution control law, small-scale
mining law, and other laws on the protection of the environment; and
mini-hydroelectric projects for local purposes;
(iv) Subject to the provisions of Title Five, Book I of this Code, health
services which include hospitals and other tertiary health services;
(v) Social welfare services which include programs and projects on
rebel returnees and evacuees; relief operations; and population
development services;
(vi) Provincial buildings, provincial jails, freedom parks and other
public assembly areas and similar facilities;
(vii) Infrastructure facilities intended to service the needs of the
residence of the province and which are funded out of provincial
funds including, but not limited to, provincial roads and bridges; inter-
municipal waterworks, drainage and sewerage, flood control, and
irrigation systems; reclamation projects; and similar facilities;
(viii) Programs and projects for low-cost housing and other mass
dwellings, except those funded by the Social Security System (SSS),
Government Service Insurance System p. 172 (GSIS), and the
Home Development Mutual Fund (HDMF): Provided, That national
funds for these programs and projects shall be equitably allocated
among the regions in proportion to the ratio of the homeless to the
population;
(ix) Investment support services, including access to credit
financing;
(x) Upgrading and modernization of tax information and collection
services through the use of computer hardware and software and
other means;
(xi) Inter-municipal telecommunications services, subject to national
policy guidelines; and
(xii) Tourism development and promotion programs;
(4) For a City:
All the services and facilities of the municipality and province, and in
addition thereto, the following:
(1) Adequate communication and transportation facilities;
(c) Notwithstanding the provisions of subsection (b) hereof, public
works and infrastructure projects and other facilities, programs and
services funded by the national government under the annual
General Appropriations Act, other special laws, pertinent executive
orders, and those wholly or partially funded from foreign sources,
are not covered under this Section, except in those cases where the
local government unit concerned is duly designated as the
implementing agency for such projects, facilities, programs, and
services.
(d) The designs, plans, specifications, testing of materials, and the
procurement of equipment and materials at P170 from both foreign
and local sources necessary for the provision of the foregoing
services and facilities shall be undertaken by the local government
unit concerned, based on national policies, standards and
guidelines.
(e) National agencies or offices concerned shall devolve to local
government units the responsibility for the provision of basic
services and facilities enumerated in this Section within six (6)
months after the effectivity of this Code.
As used in this Code, the term "devolution" refers to the act by which
the national government confers power and authority upon the
various local government units to perform specific functions and
responsibilities.
(f) The national government or the next higher level of local
government unit may provide or augment the basic services and
facilities assigned to a lower level of local government unit when
such services or facilities are not made available or, if made
available, are inadequate to meet the requirements of its inhabitants.
(g) The basic services and facilities hereinabove enumerated shall
be funded from the share of local government units in the proceeds
of national taxes and other local revenues and funding support from
the national government, its instrumentalities and government-
owned or controlled corporations which are tasked by law to
establish and maintain such services or facilities. Any fund or
resource available for the use of local government units shall be first
allocated for the provision of basic services or facilities enumerated
in subsection (b) hereof before applying the same for other
purposes, unless otherwise provided in this Code.
(h) Regional offices of national agencies or offices whose functions
are devolved to local government units as provided herein shall be
phased out within one (1) year from the approval of this Code. Said
national agencies and offices may establish such field units as may
be necessary for monitoring purposes and providing technical
assistance to local government units. The properties, equipment,
and other assets of these regional offices shall be distributed to the
local government units in the region in accordance with the rules and
regulations issued by the oversight committee created under this
Code.
(i) The devolution contemplated in this Code shall include the
transfer to local government units of the records, equipment, and
other assets and personnel of national agencies and offices
corresponding to the devolved powers, functions, and
responsibilities.
Personnel of said national agencies or offices shall be absorbed by
the local government units to which they belong or in whose areas
they are assigned to the extent that it is administratively viable as
determined by the said oversight committee: Provided, That the
rights accorded to such personnel pursuant to civil service law, rules
and regulations shall not be impaired: Provided, further, That
regional directors who are career executive service officers and
other officers of similar rank in the said regional offices who cannot
be absorbed by the local government unit shall be retained by the
national government, without any diminution of rank, salary or
tenure.
(j) To ensure the active participation of the private sector in local
governance, local government units may, by ordinance, sell, lease,
encumber, or otherwise dispose of public economic enterprises
owned by them in their proprietary capacity.
Costs may also be charged for the delivery of basic services or
facilities enumerated in this Section.
Section 18. Power to Generate and Apply Resources. - Local
government units shall have the power and authority to establish an
organization that shall be responsible for the efficient and effective
implementation of their development plans, program objectives and
priorities; to create their own sources of revenues and to levy taxes,
fees, and charges which shall accrue exclusively for their use and
disposition and which shall be retained by them; to have a just share
in national taxes which shall be automatically and directly released
to them without need of any further action; to have an equitable
share in the proceeds from the utilization and development of the
national wealth and resources within their respective territorial
jurisdictions including sharing the same with the inhabitants by way
of direct benefits; to acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property held by them in their
proprietary capacity and to apply their resources and assets for
productive, developmental, or welfare purposes, in the exercise or
furtherance of their governmental or proprietary powers and
functions and thereby ensure their development into self-reliant
communities and active participants in the attainment of national
goals.
Section 19. Eminent Domain. - A local government unit may, through
its chief executive and acting pursuant to an ordinance, exercise the
power of eminent domain for public use, or purpose or welfare for
the benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and
pertinent laws: Provided, however, That the power of eminent
domain may not be exercised unless a valid and definite offer has
been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may
immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the
proper court of at least fifteen percent (15%) of the fair market value
of the property based on the current tax declaration of the property
to be expropriated: Provided, finally, That, the amount to be paid for
the expropriated property shall be determined by the proper court,
based on the fair market value at the time of the taking of the
property.
Section 20. Reclassification of Lands. -
(a) A city or municipality may, through an ordinance passed by the
sanggunian after conducting public hearings for the purpose,
authorize the reclassification of agricultural lands and provide for the
manner of their utilization or disposition in the following cases: (1)
when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of
Agriculture or (2) where the land shall have substantially greater
economic value for residential, commercial, or industrial purposes,
as determined by the sanggunian concerned: Provided, That such
reclassification shall be limited to the following percentage of the
total agricultural land area at the time of the passage of the
ordinance:
(1) For highly urbanized and independent component cities, fifteen
percent (15%);
(2) For component cities and first to the third class municipalities,
ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent (5%):
Provided, further, That agricultural lands distributed to agrarian
reform beneficiaries pursuant to Republic Act Numbered Sixty-six
hundred fifty-seven (R.A. No. 6657). otherwise known as "The
Comprehensive Agrarian Reform Law", shall not be affected by the
said reclassification and the conversion of such lands into other
purposes shall be governed by Section 65 of said Act.
(b) The President may, when public interest so requires and upon
recommendation of the National Economic and Development
Authority, authorize a city or municipality to reclassify lands in
excess of the limits set in the next preceding paragraph.
(c) The local government units shall, in conformity with existing laws,
continue to prepare their respective comprehensive land use plans
enacted through zoning ordinances which shall be the primary and
dominant bases for the future use of land resources: Provided. That
the requirements for food production, human settlements, and
industrial expansion shall be taken into consideration in the
preparation of such plans.
(d) Where approval by a national agency is required for
reclassification, such approval shall not be unreasonably withheld.
Failure to act on a proper and complete application for
reclassification within three (3) months from receipt of the same shall
be deemed as approval thereof.
(e) Nothing in this Section shall be construed as repealing,
amending, or modifying in any manner the provisions of R.A. No.
6657.
Section 21. Closure and Opening of Roads. -
(a) A local government unit may, pursuant to an ordinance,
permanently or temporarily close or open any local road, alley, park,
or square falling within its jurisdiction: Provided, however, That in
case of permanent closure, such ordinance must be approved by at
least two-thirds (2/3) of all the members of the sanggunian, and
when necessary, an adequate substitute for the public facility that is
subject to closure is provided.
(b) No such way or place or any part thereof shall be permanently
closed without making provisions for the maintenance of public
safety therein. A property thus permanently withdrawn from public
use may be used or conveyed for any purpose for which other real
property belonging to the local government unit concerned may be
lawfully used or conveyed: Provided, however, That no freedom park
shall be closed permanently without provision for its transfer or
relocation to a new site.
(c) Any national or local road, alley, park, or square may be
temporarily closed during an actual emergency, or fiesta
celebrations, public rallies, agricultural or industrial fairs, or an
undertaking of public works and highways, telecommunications, and
waterworks projects, the duration of which shall be specified by the
local chief executive concerned in a written order: Provided,
however, That no national or local road, alley, park, or square shall
be temporarily closed for athletic, cultural, or civic activities not
officially sponsored, recognized, or approved by the local
government unit concerned.
(d) Any city, municipality, or barangay may, by a duly enacted
ordinance, temporarily close and regulate the use of any local street,
road, thoroughfare, or any other public place where shopping malls,
Sunday, flea or night markets, or shopping areas may be established
and where goods, merchandise, foodstuffs, commodities, or articles
of commerce may be sold and dispensed to the general public.
Section 22. Corporate Powers. -
(a) Every local government unit, as a corporation, shall have the
following powers:
(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to corporations,
subject to the limitations provided in this Code and other laws.
(b) Local government units may continue using, modify, or change
their existing corporate seals: Provided, That newly established local
government units or those without corporate seals may create their
own corporate seals which shall be registered with the Department
of the Interior and Local Government: Provided, further, That any
change of corporate seal shall also be registered as provided
hereon.
(c) Unless otherwise provided in this Code, no contract may be
entered into by the local chief executive in behalf of the local
government unit without prior authorization by the sanggunian
concerned. A legible copy of such contract shall be posted at a
conspicuous place in the provincial capitol or the city, municipal or
barangay hall.
(d) Local government units shall enjoy full autonomy in the exercise
of their proprietary functions and in the limitations provided in this
Code and other applicable laws,
Section 23. Authority to Negotiate and Secure Grants. - Local chief
executives may, upon authority of the sanggunian, negotiate and
secure financial grants or donations in kind, in support of the basic
services or facilities enumerated under Section 17 hereof, from local
and foreign assistance agencies without necessity of securing
clearance or approval therefor from any department, agency, or
office of the national government of from any higher local
government unit: Provided, That projects financed by such grants or
assistance with national security implications shall be approved by
the national agency concerned: Provided, further, That when such
national agency fails to act on the request for approval within thirty
(30) days from receipt thereof, the same shall be deemed approved.
The local chief executive shall, within thirty (30) days upon signing
of such grant agreement or deed of donation, report the nature,
amount, and terms of such assistance to both Houses of Congress
and the President.
Section 24. Liability for Damages. - Local government units and their
officials are not exempt from liability for death or injury to persons or
damage to property.
CHAPTER III
Intergovernmental Relations
ARTICLE I
National Government and Local Government Units
Section 25. National Supervision over Local Government Units. -
(a) Consistent with the basic policy on local autonomy, the President
shall exercise general supervision over local government units to
ensure that their acts are within the scope of their prescribed powers
and functions.
The President shall exercise supervisory authority directly over
provinces, highly urbanized cities, and independent component
cities; through the province with respect to component cities and
municipalities; and through the city and municipality with respect to
barangays.
(b) National agencies and offices with project implementation
functions shall coordinate with one another and with the local
government units concerned in the discharge of these functions.
They shall ensure the participation of local government units both in
the planning and implementation of said national projects.
(c) The President may, upon request of the local government unit
concerned, direct the appropriate national agency to provide
financial, technical, or other forms of assistance to the local
government unit. Such assistance shall be extended at no extra cost
to the local government unit concerned.
(d) National agencies and offices including government-owned or
controlled corporations with field units or branches in a province,
city, or municipality shall furnish the local chief executive concerned,
for his information and guidance, monthly reports including duly
certified budgetary allocations and expenditures.
Section 26. Duty of National Government Agencies in the
Maintenance of Ecological Balance. - It shall be the duty of every
national agency or government-owned or controlled corporation
authorizing or involved in the planning and implementation of any
project or program that may cause pollution, climatic change,
depletion of non-renewable resources, loss of crop land, rangeland,
or forest cover, and extinction of animal or plant species, to consult
with the local government units, nongovernmental organizations,
and other sectors concerned and explain the goals and objectives of
the project or program, its impact upon the people and the
community in terms of environmental or ecological balance, and the
measures that will be undertaken to prevent or minimize the adverse
effects thereof.
Section 27. Prior Consultations Required. - No project or program
shall be implemented by government authorities unless the
consultations mentioned in Sections 2 (c) and 26 hereof are
complied with, and prior approval of the sanggunian concerned is
obtained: Provided, That occupants in areas where such projects
are to be implemented shall not be evicted unless appropriate
relocation sites have been provided, in accordance with the
provisions of the Constitution.
ARTICLE II
Relations with the Philippine National Police
Section 28. Powers of Local Chief Executives over the Units of the
Philippine National Police. - The extent of operational supervision
and control of local chief executives over the police force, fire
protection unit, and jail management personnel assigned in their
respective jurisdictions shall be governed by the provisions of
Republic Act Numbered Sixty-nine hundred seventy-five (R.A. No.
6975), otherwise known as "The Department of the Interior and
Local Government Act of 1990", and the rules and regulations issued
pursuant thereto.
ARTICLE III
Inter-Local Government Relations
Section 29. Provincial Relations with Component Cities and
Municipalities. - The province, through the governor, shall ensure
that every component city and municipality within its territorial
jurisdiction acts within the scope of its prescribed powers and
functions. Highly urbanized cities and independent component cities
shall be independent of the province.
Section 30. Review of Executive Orders. -
(a) Except as otherwise provided under the Constitution and special
statutes, the governor shall review all executive orders promulgated
by the component city or municipal mayor within his jurisdiction. The
city or municipal mayor shall review all executive orders
promulgated by the punong barangay within his jurisdiction. Copies
of such orders shall be forwarded to the governor or the city or
municipal mayor, as the case may be, within three (3) days from their
issuance. In all instances of review, the local chief executive
concerned shall ensure that such executive orders are within the
powers granted by law and in conformity with provincial, city, or
municipal ordinances.
(b) If the governor or the city or municipal mayor fails to act on said
executive orders within thirty (30) days after their submission, the
same shall be deemed consistent with law and therefore valid.
Section 31. Submission of Municipal Questions to the Provincial
Legal Officer or Prosecutor. - In the absence of a municipal legal
officer, the municipal government may secure the opinion of the
provincial legal officer, and in the absence of the latter, that of the
provincial prosecutor on any legal question affecting the
municipality.
Section 32. City and Municipal Supervision over Their Respective
Barangays. - The city or municipality, through the city or municipal
mayor concerned, shall exercise general supervision over
component barangays to ensure that said barangays act within the
scope of their prescribed powers and functions.
Section 33. Cooperative Undertakings Among Local Government
Units. - Local government units may, through appropriate
ordinances, group themselves, consolidate, or coordinate their
efforts, services, and resources for purposes commonly beneficial to
them. In support of such undertakings, the local government units
involved may, upon approval by the sanggunian concerned after a
public hearing conducted for the purpose, contribute funds, real
estate, equipment, and other kinds of property and appoint or assign
personnel under such terms and conditions as may be agreed upon
by the participating local units through Memoranda of Agreement.
CHAPTER IV
Relations With People's and Non-Governmental Organizations
Section 34. Role of People's and Non-governmental Organizations.
- Local government units shall promote the establishment and
operation of people's and non-governmental organizations to
become active partners in the pursuit of local autonomy.
Section 35. Linkages with People's and Non-governmental
Organizations. - Local government units may enter into joint
ventures and such other cooperative arrangements with people's
and non-governmental organizations to engage in the delivery of
certain basic services, capability-building and livelihood projects,
and to develop local enterprises designed to improve productivity
and income, diversity agriculture, spur rural industrialization,
promote ecological balance, and enhance the economic and social
well-being of the people.
Section 36. Assistance to People's and Non-governmental
Organizations. - A local government unit may, through its local chief
executive and with the concurrence of the sanggunian concerned,
provide assistance, financial or otherwise, to such people's and non-
governmental organizations for economic, socially-oriented,
environmental, or cultural projects to be implemented within its
territorial jurisdiction.
CHAPTER V
Local Prequalification, Bids and Awards Committee
Section 37. Local Prequalification, Bids and Awards Committee
(Local PBAC). -
(a) There is hereby created a local prequalification, bids and awards
committee in every province, city, and municipality, which shall be
primarily responsible for the conduct of prequalification of
contractors, bidding, evaluation of bids, and the recommendation of
awards concerning local infrastructure projects. The governor or the
city or municipal mayor shall act as the chairman with the following
as members:
(1) The chairman of the appropriations committee of the sanggunian
concerned;
(2) A representative of the minority party in the sanggunian
concerned, if any, or if there be none, one (1) chosen by said
sanggunian from among its members;
(3) The local treasurer;
(4) Two (2) representatives of non-governmental organizations that
are represented in the local development council concerned, to be
chosen by the organizations themselves; and
(5) Any practicing certified public accountant from the private sector,
to be designated by the local chapter of the Philippine Institute of
Certified Public Accountants, if any.
Representatives of the Commission on Audit shall observe the
proceedings of such committee and shall certify that the rules and
procedures for prequalification, bids and awards have been
complied with.
(b) The agenda and other information relevant to the meetings of
such committee shall be deliberated upon by the committee at least
one (1) week before the holding of such meetings.
(c) All meetings of the committee shall be held in the provincial
capitol or the city or municipal hall. The minutes of such meetings of
the committee and any decision made therein shall be duly
recorded, posted at a prominent place in the provincial capitol or the
city or municipal hall, and delivered by the most expedient means to
elective local officials concerned.
Section 38. Local Technical Committee. -
(a) There is hereby created a local technical committee in every
province, city and municipality to provide technical assistance to the
local prequalification, bids and awards committees. It shall be
composed of the provincial, city or municipal engineer, the local
planning and development coordinator, and such other officials
designated by the local prequalification, bids and awards committee.
(b) The chairman of the local technical committee shall be
designated by the local prequalification, bids and awards committee
and shall attend its meeting in order to present the reports and
recommendations of the local technical committee.
TITLE II
ELECTIVE OFFICIALS
CHAPTER I
Qualifications and Election
Section 39. Qualifications. -
(a) An elective local official must be a citizen of the Philippines; a
registered voter in the barangay, municipality, city, or province or, in
the case of a member of the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan, the district where
he intends to be elected; a resident therein for at least one (1) year
immediately preceding the day of the election; and able to read and
write Filipino or any other local language or dialect.
(b) Candidates for the position of governor, vice-governor, or
member of the sangguniang panlalawigan, or mayor, vice-mayor or
member of the sangguniang panlungsod of highly urbanized cities
must be at least twenty-one (21) years of age on election day.
(c) Candidates for the position of mayor or vice-mayor of
independent component cities, component cities, or municipalities
must be at least twenty-one (21) years of age on election day.
(d) Candidates for the position of member of the sangguniang
panlungsod or sangguniang bayan must be at least eighteen (18)
years of age on election day.
(e) Candidates for the position of punong barangay or member of
the sangguniang barangay must be at least eighteen (18) years of
age on election day.
(f) Candidates for the sangguniang kabataan must be at least fifteen
(15) years of age but not more than twenty-one (21) years of age on
election day.
Section 40. Disqualifications. - The following persons are
disqualified from running for any elective local position:
(a) Those sentenced by final judgment for an offense involving moral
turpitude or for an offense punishable by one (1) year or more of
imprisonment, within two (2) years after serving sentence;
(b) Those removed from office as a result of an administrative case;
(c) Those convicted by final judgment for violating the oath of
allegiance to the Republic;
(d) Those with dual citizenship;
(e) Fugitives from justice in criminal or non-political cases here or
abroad;
(f) Permanent residents in a foreign country or those who have
acquired the right to reside abroad and continue to avail of the same
right after the effectivity of this Code; and
(g) The insane or feeble-minded.
Section 41. Manner of Election. -
(a) The governor, vice-governor, city mayor, city vice-mayor,
municipal mayor, municipal vice-mayor, and punong barangay shall
be elected at large in their respective units by the qualified voters
therein. However, the sangguniang kabataan chairman for each
barangay shall be elected by the registered voters of the katipunan
ng kabataan, as provided in this Code.
(b) The regular members of the sangguniang panlalawigan,
sangguniang panlungsod, and sangguniang bayan shall be elected
by district, as may be provided for by law. Sangguniang barangay
members shall be elected at large. The presidents of the leagues of
sanggunian members of component cities and municipalities shall
serve as ex officio members of the sangguniang panlalawigan
concerned. The presidents of the "liga ng mga barangay and the
pederasyon ng mga sangguniang kabataan" elected by their
respective chapters, as provided in this Code, shall serve as ex
officio members of the sangguniang panlalawigan, sangguniang
panlungsod, and sangguniang bayan.
(c) In addition thereto, there shall be one (1) sectoral representative
from the women, one (1) from the workers, and one (1) from any of
the following sectors: the urban poor, indigenous cultural
communities, disabled persons, or any other sector as may be
determined by the sanggunian concerned within ninety (90) days
prior to the holding of the next local elections as may be provided for
by law. The COMELEC shall promulgate the rules and regulations
to effectively provide for the election of such sectoral
representatives.
Section 42. Date of Election. - Unless otherwise provided by law, the
elections for local officials shall be held every three (3) years on the
second Monday of May.
Section 43. Term of Office. -
(a) The term of office of all local elective officials elected after the
effectivity of this Code shall be three (3) years, starting from noon of
June 30, 1992 or such date as may be provided for by law, except
that of elective barangay officials: Provided, That all local officials
first elected during the local elections immediately following the
ratification of the 1987 Constitution shall serve until noon of June 30,
1992.
(b) No local elective official shall serve for more than three (3)
consecutive terms in the same position. Voluntary renunciation of
the office for any length of time shall not be considered as an
interruption in the continuity of service for the full term for which the
elective official concerned was elected.
(c) The term of office of barangay officials and members of the
sangguniang kabataan shall be for three (3) years, which shall begin
after the regular election of barangay officials on the second Monday
of May 1994.
CHAPTER II
Vacancies and Succession
Section 44. Permanent Vacancies in the Offices of the Governor,
Vice-Governor, Mayor, and Vice-Mayor. - If a permanent vacancy
occurs in the office of the governor or mayor, the vice-governor or
vice-mayor concerned shall become the governor or mayor. If a
permanent vacancy occurs in the offices of the governor, vice-
governor, mayor, or vice-mayor, the highest ranking sanggunian
member or, in case of his permanent inability, the second highest
ranking sanggunian member, shall become the governor, vice-
governor, mayor or vice-mayor, as the case may be. Subsequent
vacancies in the said office shall be filled automatically by the other
sanggunian members according to their ranking as defined herein.
(b) If a permanent vacancy occurs in the office of the punong
barangay, the highest ranking sanggunian barangay member or, in
case of his permanent inability, the second highest ranking
sanggunian member, shall become the punong barangay.
(c) A tie between or among the highest ranking sanggunian
members shall be resolved by the drawing of lots.
(d) The successors as defined herein shall serve only the unexpired
terms of their predecessors.
For purposes of this Chapter, a permanent vacancy arises when an
elective local official fills a higher vacant office, refuses to assume
office, fails to qualify, dies, is removed from office, voluntarily
resigns, or is otherwise permanently incapacitated to discharge the
functions of his office.
For purposes of succession as provided in the Chapter, ranking in
the sanggunian shall be determined on the basis of the proportion of
votes obtained by each winning candidate to the total number of
registered voters in each district in the immediately preceding local
election.
Section 45. Permanent Vacancies in the Sanggunian. -
(a) Permanent vacancies in the sanggunian where automatic
succession provided above do not apply shall be filled by
appointment in the following manner:
(1) The President, through the Executive Secretary, in the case of
the sangguniang panlalawigan and the sangguniang panlungsod of
highly urbanized cities and independent component cities;
(2) The governor, in the case of the sangguniang panlungsod of
component cities and the sangguniang bayan;
(3) The city or municipal mayor, in the case of sangguniang
barangay, upon recommendation of the sangguniang barangay
concerned.
(b) Except for the sangguniang barangay, only the nominee of the
political party under which the sanggunian member concerned had
been elected and whose elevation to the position next higher in rank
created the last vacancy in the sanggunian shall be appointed in the
manner hereinabove provided. The appointee shall come from the
same political party as that of the sanggunian member who caused
the vacancy and shall serve the unexpired term of the vacant office.
In the appointment herein mentioned, a nomination and a certificate
of membership of the appointee from the highest official of the
political party concerned are conditions sine qua non, and any
appointment without such nomination and certification shall be null
and void ab initio and shall be a ground for administrative action
against the official responsible therefore.
(c) In case or permanent vacancy is caused by a sanggunian
member who does not belong to any political party, the local chief
executive shall, upon recommendation of the sanggunian
concerned, appoint a qualified person to fill the vacancy.
(d) In case of vacancy in the representation of the youth and the
barangay in the sanggunian, said vacancy shall be filled
automatically by the official next in rank of the organization
concerned.
Section 46. Temporary Vacancy in the Office of the Local Chief
Executive. -
(a) When the governor, city or municipal mayor, or punong barangay
is temporarily incapacitated to perform his duties for physical or legal
reasons such as, but not limited to, leave of absence, travel abroad,
and suspension from office, the vice-governor, city or municipal vice-
mayor, or the highest ranking sangguniang barangay member shall
automatically exercise the powers and perform the duties and
functions of the local chief executive concerned, except the power
to appoint, suspend, or dismiss employees which can only be
exercised if the period of temporary incapacity exceeds thirty (30)
working days.
(b) Said temporary incapacity shall terminate upon submission to the
appropriate sanggunian of a written declaration by the local chief
executive concerned that he has reported back to office. In cases
where the temporary incapacity is due to legal causes, the local chief
executive concerned shall also submit necessary documents
showing that said legal causes no longer exist.
(c) When the incumbent local chief executive is traveling within the
country but outside his territorial jurisdiction for a period not
exceeding three (3) consecutive days, he may designate in writing
the officer-in-charge of the said office. Such authorization shall
specify the powers and functions that the local official concerned
shall exercise in the absence of the local chief executive except the
power to appoint, suspend, or dismiss employees.
(d) In the event, however, that the local chief executive concerned
fails or refuses to issue such authorization, the vice-governor, the
city or municipal vice-mayor, or the highest ranking sangguniang
barangay member, as the case may be, shall have the right to
assume the powers, duties, and functions of the said office on the
fourth (4th) day of absence of the said local chief executive, subject
to the limitations provided in subsection (c) hereof.
(e) Except as provided above, the local chief executive shall in no
case authorize any local official to assume the powers, duties, and
functions of the office, other than the vice-governor, the city or
municipal vice-mayor, or the highest ranking sangguniang barangay
member, as the case may be.
Section 47. Approval of Leaves of Absence. -
(a) Leaves of absence of local elective officials shall be approved as
follows:
(1) Leaves of absence of the governor and the mayor of a highly
urbanized city or an independent component city shall be approved
by the President or his duly authorized representative;
(2) Leaves of absence of vice-governor or a city or municipal vice-
mayor shall be approved by the local chief executive concerned:
Provided, That the leaves of absence of the members of the
sanggunian and its employees shall be approved by the vice-
governor or city or municipal vice-mayor concerned;
(3) Leaves of absence of the component city or municipal mayor
shall be approved by the governor; and
(4) Leaves of absence of a punong barangay shall be approved by
the city or municipal mayor: Provided, That leaves of absence of
sangguniang barangay members shall be approved by the punong
barangay.
(b) Whenever the application for leave of absence hereinabove
specified is not acted upon within five (5) working days after receipt
thereof, the application for leave of absence shall be deemed
approved.
CHAPTER III
Local Legislation
Section 48. Local Legislative Power. - Local legislative power shall
be exercised by the sangguniang panlalawigan for the province; the
sangguniang panlungsod for the city; the sangguniang bayan for the
municipality; and the sangguniang barangay for the barangay.
Section 49. Presiding Officer. -
(a) The vice-governor shall be the presiding officer of the
sangguniang panlalawigan; the city vice-mayor, of the sangguniang
panlungsod; the municipal vice-mayor, of the sangguniang bayan;
and the punong barangay, of the sangguniang barangay. The
presiding officer shall vote only to break a tie.
(b) In the event of the inability of the regular presiding officer to
preside at a sanggunian session, the members present and
constituting a quorum shall elect from among themselves a
temporary presiding officer. He shall certify within ten (10) days from
the passage of ordinances enacted and resolutions adopted by the
sanggunian in the session over which he temporarily presided.
Section 50. Internal Rules of Procedure. -
(a) On the first regular session following the election of its members
and within ninety (90) days thereafter, the sanggunian concerned
shall adopt or update its existing rules of procedure.
(b) The rules of procedure shall provided for the following:
(1) The organization of the sanggunian and the election of its officers
as well as the creation of standing committees which shall include,
but shall not be limited to, the committees on appropriations, women
and family, human rights, youth and sports development,
environmental protection, and cooperatives; the general jurisdiction
of each committee; and the election of the chairman and members
of each committee;
(2) The order and calendar of business for each session;
(3) The legislative process;
(4) The parliamentary procedures which include the conduct of
members during sessions;
(5) The discipline of members for disorderly behavior and absences
without justifiable cause for four (4) consecutive sessions, for which
they may be censured, reprimanded, or excluded from the session,
suspended for not more than sixty (60) days, or expelled: Provided,
That the penalty of suspension or expulsion shall require the
concurrence of at least two-thirds (2/3) vote of all the sanggunian
members: Provided, further, That a member convicted by final
judgment to imprisonment of at least one (1) year for any crime
involving moral turpitude shall be automatically expelled from the
sanggunian; and
(6) Such other rules as the sanggunian may adopt.lawphil™
Section 51. Full Disclosure of Financial and Business Interests of
Sanggunian Members. -
(a) Every sanggunian member shall, upon assumption to office,
make a full disclosure of his business and financial interests, or
professional relationship or any relation by affinity or consanguinity
within the fourth civil degree, which he may have with any person,
firm, or entity affected by any ordinance or resolution under
consideration by the sanggunian of which he is a member, which
relationship may result in conflict of interest. Such relationship shall
include:
(1) Ownership of stock or capital, or investment, in the entity or firm
to which the ordinance or resolution may apply; and
(2) Contracts or agreements with any person or entity which the
ordinance or resolution under consideration may affect.
In the absence of a specific constitutional or statutory provision
applicable to this situation, "conflict of interest" refers in general to
one where it may be reasonably deduced that a member of a
sanggunian may not act in the public interest due to some private,
pecuniary, or other personal considerations that may tend to affect
his judgment to the prejudice of the service or the public.
(b) The disclosure required under this Act shall be made in writing
and submitted to the secretary of the sanggunian or the secretary of
the committee of which he is a member. The disclosure shall, in all
cases, form part of the record of the proceedings and shall be made
in the following manner:
(1) Disclosure shall be made before the member participates in the
deliberations on the ordinance or resolution under consideration:
Provided, That, if the member did not participate during the
deliberations, the disclosure shall be made before voting on the
ordinance or resolution on second and third readings; and
(2) Disclosure shall be made when a member takes a position or
makes a privilege speech on a matter that may affect the business
interest, financial connection, or professional relationship described
herein.
Section 52. Sessions. -
(a) On the first day of the session immediately following the election
of its members, the sanggunian shall, by resolution, fix the day, time,
and place of its regular sessions. The minimum numbers of regular
sessions shall be once a week for the sangguniang panlalawigan,
sangguniang panlungsod, and sangguniang bayan, and twice a
month for the sangguniang barangay.
(b) When public interest so demands, special sessions may be
called by the local chief executive or by a majority of the members
of the sanggunian.
(c) All sanggunian sessions shall be open to the public unless a
closed-door session is ordered by an affirmative vote of a majority
of the members present, there being a quorum, in the public interest
or for reasons of security, decency, or morality. No two (2) sessions,
regular or special, may be held in a single day.
(d) In the case of special sessions of the sanggunian, a written notice
to the members shall be served personally at the member's usual
place of residence at least twenty-four (24) hours before the special
session is held.
Unless otherwise concurred in by two-thirds (2/3) vote of the
sanggunian members present, there being a quorum, no other
matters may be considered at a special session except those stated
in the notice.
(e) Each sanggunian shall keep a journal and record of its
proceedings which may be published upon resolution of the
sanggunian concerned.
Section 53. Quorum. -
(a) A majority of all the members of the sanggunian who have been
elected and qualified shall constitute a quorum to transact official
business. Should a question of quorum be raised during a session,
the presiding officer shall immediately proceed to call the roll of the
members and thereafter announce the results.
(b) Where there is no quorum, the presiding officer may declare a
recess until such time as a quorum is constituted, or a majority of
the members present may adjourn from day to day and may compel
the immediate attendance of any member absent without justifiable
cause by designating a member of the sanggunian to be assisted by
a member or members of the police force assigned in the territorial
jurisdiction of the local government unit concerned, to arrest the
absent member and present him at the session.
(c) If there is still no quorum despite the enforcement of the
immediately preceding subsection, no business shall be transacted.
The presiding officer, upon proper motion duly approved by the
members present, shall then declare the session adjourned for lack
of quorum.
Section 54. Approval of Ordinances. -
(a) Every ordinance enacted by the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan shall be presented
to the provincial governor or city or municipal mayor, as the case
may be. If the local chief executive concerned approves the same,
he shall affix his signature on each and every page thereof;
otherwise, he shall veto it and return the same with his objections to
the sanggunian, which may proceed to reconsider the same. The
sanggunian concerned may override the veto of the local chief
executive by two-thirds (2/3) vote of all its members, thereby making
the ordinance or resolution effective for all legal intents and
purposes.
(b) The veto shall be communicated by the local chief executive
concerned to the sanggunian within fifteen (15) days in the case of
a province, and ten (10) days in the case of a city or a municipality;
otherwise, the ordinance shall be deemed approved as if he had
signed it.
(c) Ordinances enacted by the sangguniang barangay shall, upon
approval by the majority of all its members, be signed by the punong
barangay.
Section 55. Veto Power of the Local Chief Executive. -
(a) The local chief executive may veto any ordinance of the
sanggunian panlalawigan, sangguniang panlungsod, or sanggunian
bayan on the ground that it is ultra vires or prejudicial to the public
welfare, stating his reasons therefor in writing.
(b) The local chief executive, except the punong barangay, shall
have the power to veto any particular item or items of an
appropriations ordinance, an ordinance or resolution adopting a
local development plan and public investment program, or an
ordinance directing the payment of money or creating liability. In
such a case, the veto shall not affect the item or items which are not
objected to. The vetoed item or items shall not take effect unless the
sanggunian overrides the veto in the manner herein provided;
otherwise, the item or items in the appropriations ordinance of the
previous year corresponding to those vetoed, if any, shall be
deemed reenacted.
(c) The local chief executive may veto an ordinance or resolution
only once. The sanggunian may override the veto of the local chief
executive concerned by two-thirds (2/3) vote of all its members,
thereby making the ordinance effective even without the approval of
the local chief executive concerned.
Section 56. Review of Component City and Municipal Ordinances or
Resolutions by the Sangguniang Panlalawigan.
(a) Within three (3) days after approval, the secretary to the
sanggunian panlungsod or sangguniang bayan shall forward to the
sangguniang panlalawigan for review, copies of approved
ordinances and the resolutions approving the local development
plans and public investment programs formulated by the local
development councils.
(b) Within thirty (30) days after the receipt of copies of such
ordinances and resolutions, the sangguniang panlalawigan shall
examine the documents or transmit them to the provincial attorney,
or if there be none, to the provincial prosecutor for prompt
examination. The provincial attorney or provincial prosecutor shall,
within a period of ten (10) days from receipt of the documents, inform
the sangguniang panlalawigan in writing of his comments or
recommendations, which may be considered by the sangguniang
panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds that such an ordinance or
resolution is beyond the power conferred upon the sangguniang
panlungsod or sangguniang bayan concerned, it shall declare such
ordinance or resolution invalid in whole or in part. The sangguniang
panlalawigan shall enter its action in the minutes and shall advise
the corresponding city or municipal authorities of the action it has
taken.
(d) If no action has been taken by the sangguniang panlalawigan
within thirty (30) days after submission of such an ordinance or
resolution, the same shall be presumed consistent with law and
therefore valid.
Section 57. Review of Barangay Ordinances by the
Sangguniang Panlungsod or Sangguniang Bayan. -
(a) Within ten (10) days after its enactment, the sangguniang
barangay shall furnish copies of all barangay ordinances to the
sangguniang panlungsod or sangguniang bayan concerned for
review as to whether the ordinance is consistent with law and city or
municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the
case may be, fails to take action on barangay ordinances within thirty
(30) days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the
case may be, finds the barangay ordinances inconsistent with law or
city or municipal ordinances, the sanggunian concerned shall, within
thirty (30) days from receipt thereof, return the same with its
comments and recommendations to the sangguniang barangay
concerned for adjustment, amendment, or modification; in which
case, the effectivity of the barangay ordinance is suspended until
such time as the revision called for is effected.
Section 58. Enforcement of Disapproved Ordinances or
Resolutions. - Any attempt to enforce any ordinance or any
resolution approving the local development plan and public
investment program, after the disapproval thereof, shall be sufficient
ground for the suspension or dismissal of the official or employee
concerned.
Section 59. Effectivity of Ordinances or Resolutions. -
(a) Unless otherwise stated in the ordinance or the resolution
approving the local development plan and public investment
program, the same shall take effect after ten (10) days from the date
a copy thereof is posted in a bulletin board at the entrance of the
provincial capitol or city, municipal, or barangay hall, as the case
may be, and in at least two (2) other conspicuous places in the local
government unit concerned.
(b) The secretary to the sanggunian concerned shall cause the
posting of an ordinance or resolution in the bulletin board at the
entrance of the provincial capitol and the city, municipal, or barangay
hall in at least two (2) conspicuous places in the local government
unit concerned not later than five (5) days after approval thereof.
The text of the ordinance or resolution shall be disseminated and
posted in Filipino or English and in the language understood by the
majority of the people in the local government unit concerned, and
the secretary to the sanggunian shall record such fact in a book kept
for the purpose, stating the dates of approval and posting.
(c) The gist of all ordinances with penal sanctions shall be published
in a newspaper of general circulation within the province where the
local legislative body concerned belongs. In the absence of any
newspaper of general circulation within the province, posting of such
ordinances shall be made in all municipalities and cities of the
province where the sanggunian of origin is situated.
(d) In the case of highly urbanized and independent component
cities, the main features of the ordinance or resolution duly enacted
or adopted shall, in addition to being posted, be published once in a
local newspaper of general circulation within the city: Provided, That
in the absence thereof the ordinance or resolution shall be published
in any newspaper of general circulation.
CHAPTER IV
Disciplinary Actions
Section 60. Grounds for Disciplinary Actions. - An elective local
official may be disciplined, suspended, or removed from office on
any of the following grounds:
(a) Disloyalty to the Republic of the Philippines;
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in office, gross negligence,
or dereliction of duty;
(d) Commission of any offense involving moral turpitude or an
offense punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15) consecutive working days,
except in the case of members of the sangguniang panlalawigan,
sangguniang panlungsod, sangguniang bayan, and sangguniang
barangay;
(g) Application for, or acquisition of, foreign citizenship or residence
or the status of an immigrant of another country; and
(h) Such other grounds as may be provided in this Code and other
laws.
An elective local official may be removed from office on the grounds
enumerated above by order of the proper court.
Section 61. Form and Filing of Administrative Complaints. - A
verified complaint against any erring local elective official shall be
prepared as follows:
(a) A complaint against any elective official of a province, a highly
urbanized city, an independent component city or component city
shall be filed before the Office of the President;
(b) A complaint against any elective official of a municipality shall be
filed before the sangguniang panlalawigan whose decision may be
appealed to the Office of the President; and
(c) A complaint against any elective barangay official shall be filed
before the sangguniang panlungsod or sangguniang bayan
concerned whose decision shall be final and executory.
Section 62. Notice of hearing. -
(a) Within seven (7) days after the administrative complaint is filed,
the Office of the President or the sanggunian concerned, as the case
may be, shall require the respondent to submit his verified answer
within fifteen (15) days from receipt thereof, and commence the
investigation of the case within ten (10) days after receipt of such
answer of the respondent.
(b) When the respondent is an elective official of a province or highly
urbanized city, such hearing and investigation shall be conducted in
the place where he renders or holds office. For all other local elective
officials, the venue shall be the place where the sanggunian
concerned is located.
(c) However, no investigation shall be held within ninety (90) days
immediately prior to any local election, and no preventive
suspension shall be imposed within the said period. If preventive
suspension has been imposed prior to the 90-day period
immediately preceding local election, it shall be deemed
automatically lifted upon the start of aforesaid period.
Section 63. Preventive Suspension. -(a) Preventive suspension
may be imposed:
(1) By the President, if the respondent is an elective official of a
province, a highly urbanized or an independent component city;
(2) By the governor, if the respondent is an elective official of a
component city or municipality; or
(3) By the mayor, if the respondent is an elective official of the
barangay.
(b) Preventive suspension may be imposed at any time after the
issues are joined, when the evidence of guilt is strong, and given the
gravity of the offense, there is great probability that the continuance
in office of the respondent could influence the witnesses or pose a
threat to the safety and integrity of the records and other evidence:
Provided, That, any single preventive suspension of local elective
officials shall not extend beyond sixty (60) days: Provided, further,
That in the event that several administrative cases are filed against
an elective official, he cannot be preventively suspended for more
than ninety (90) days within a single year on the same ground or
grounds existing and known at the time of the first suspension.
(c) Upon expiration of the preventive suspension, the suspended
elective official shall be deemed reinstated in office without prejudice
to the continuation of the proceedings against him, which shall be
terminated within one hundred twenty (120) days from the time he
was formally notified of the case against him. However, if the delay
in the proceedings of the case is due to his fault, neglect, or request,
other than the appeal duly filed, the duration of such delay shall not
be counted in computing the time of termination of the case.
(d) Any abuse of the exercise of the power of preventive suspension
shall be penalized as abuse of authority.
Section 64. Salary of Respondent Pending Suspension. - The
respondent official preventively suspended from office shall receive
no salary or compensation during such suspension; but upon
subsequent exoneration and reinstatement, he shall be paid full
salary or compensation including such emoluments accruing during
such suspension.
Section 65. Rights of Respondent. - The respondent shall be
accorded full opportunity to appear and defend himself in person or
by counsel, to confront and cross-examine the witnesses against
him, and to require the attendance of witnesses and the production
of documentary process of subpoena or subpoena duces tecum.
Section 66. Form and Notice of Decision. -
(a) The investigation of the case shall be terminated within ninety
(90) days from the start thereof. Within thirty (30) days after the end
of the investigation, the Office of the President or the sanggunian
concerned shall render a decision in writing stating clearly and
distinctly the facts and the reasons for such decision. Copies of said
decision shall immediately be furnished the respondent and all
interested parties.
(b) The penalty of suspension shall not exceed the unexpired term
of the respondent or a period of six (6) months for every
administrative offense, nor shall said penalty be a bar to the
candidacy of the respondent so suspended as long as he meets the
qualifications required for the office.
(c) The penalty of removal from office as a result of an administrative
investigation shall be considered a bar to the candidacy of the
respondent for any elective position.
Section 67. Administrative Appeals. - Decisions in administrative
cases may, within thirty (30) days from receipt thereof, be appealed
to the following:
(a) The sangguniang panlalawigan, in the case of decisions of the
sangguniang panlungsod of component cities and the sangguniang
bayan; and
(b) The Office of the President, in the case of decisions of the
sangguniang panlalawigan and the sangguniang panlungsod of
highly urbanized cities and independent component cities.
Decisions of the Office of the President shall be final and executory.
Section 68. Execution Pending Appeal. - An appeal shall not prevent
a decision from becoming final or executory. The respondent shall
be considered as having been placed under preventive suspension
during the pendency of an appeal in the event he wins such appeal.
In the event the appeal results in an exoneration, he shall be paid
his salary and such other emoluments during the pendency of the
appeal.
CHAPTER V
Recall
Section 69. By Whom Exercised. - The power of recall for loss of
confidence shall be exercised by the registered voters of a local
government unit to which the local elective official subject to such
recall belongs.
Section 70. Initiation of the Recall Process. -
(a) Recall may be initiated by a preparatory recall assembly or by
the registered voters of the local government unit to which the local
elective official subject to such recall belongs.
(b) There shall be a preparatory recall assembly in every province,
city, district, and municipality which shall be composed of the
following:
(1) Provincial level. - All mayors, vice-mayors, and sanggunian
members of the municipalities and component cities;
(2) City level. - All punong barangay and sanggunian barangay
members in the city;
(3) Legislative District level. - In case where sangguniang
panlalawigan members are elected by district, all elective municipal
officials in the district; and in cases where sangguniang panlungsod
members are elected by district, all elective barangay officials in the
district; and
(4) Municipal level. - All punong barangay and sangguniang
barangay members in the municipality.
(c) A majority of all the preparatory recall assembly members may
convene in session in a public place and initiate a recall proceedings
against any elective official in the local government unit concerned.
Recall of provincial, city, or municipal officials shall be validly
initiated through a resolution adopted by a majority of all the
members of the preparatory recall assembly concerned during its
session called for the purpose.
(d) Recall of any elective provincial, city, municipal, or barangay
official may also be validly initiated upon petition of at least twenty-
five percent (25%) of the total number of registered voters in the
local government unit concerned during the election in which the
local official sought to be recalled was elected.
(1) A written petition for recall duly signed before the election
registrar or his representative, and in the presence of a
representative of the petitioner and a representative of the official
sought to be recalled and, and in a public place in the province, city,
municipality, or barangay, as the case may be, shall be filed with the
COMELEC through its office in the local government unit concerned.
The COMELEC or its duly authorized representative shall cause the
publication of the petition in a public and conspicuous place for a
period of not less than ten (10) days nor more than twenty (20) days,
for the purpose of verifying the authenticity and genuineness of the
petition and the required percentage of voters.
(2) Upon the lapse of the aforesaid period, the COMELEC or its duly
authorized representative shall announce the acceptance of
candidates to the position and thereafter prepare the list of
candidates which shall include the name of the official sought to be
recalled.
Section 71. Election on Recall. - Upon the filing of a valid resolution
or petition for recall with the appropriate local office of the
COMELEC, the Commission or its duly authorized representative
shall set the date of the election on recall, which shall not be later
than thirty (30) days after the filing of the resolution or petition for
recall in the case of the barangay, city, or municipal officials. and
forty-five (45) days in the case of provincial officials. The official or
officials sought to be recalled shall automatically be considered as
duly registered candidate or candidates to the pertinent positions
and, like other candidates, shall be entitled to be voted upon.
Section 72. Effectivity of Recall. - The recall of an elective local
official shall be effective only upon the election and proclamation of
a successor in the person of the candidate receiving the highest
number of votes cast during the election on recall. Should the official
sought to be recalled receive the highest number of votes,
confidence in him is thereby affirmed, and he shall continue in office.
Section 73. Prohibition from Resignation. - The elective local official
sought to be recalled shall not be allowed to resign while the recall
process is in progress.
Section 74. Limitations on Recall. -
(a) Any elective local official may be the subject of a recall election
only once during his term of office for loss of confidence.
(b) No recall shall take place within one (1) year from the date of the
official's assumption to office or one (1) year immediately preceding
a regular local election.
Section 75. Expenses Incident to Recall Elections. - All expenses
incident to recall elections shall be borne by the COMELEC. For this
purpose, there shall be included in the annual General
Appropriations Act a contingency fund at the disposal of the
COMELEC for the conduct of recall elections.
TITLE III.
HUMAN RESOURCES AND DEVELOPMENT
Section 76. Organizational Structure and Staffing Pattern. - Every
local government unit shall design and implement its own
organizational structure and staffing pattern taking into
consideration its service requirements and financial capability,
subject to the minimum standards and guidelines prescribed by the
Civil Service Commission.
Section 77. Responsibility for Human Resources and Development.
- The chief executive of every local government unit shall be
responsible for human resources and development in his unit and
shall take all personnel actions in accordance with the Constitutional
provisions on civil service, pertinent laws, and rules and regulations
thereon, including such policies, guidelines and standards as the
Civil Service Commission may establish: Provided, That the local
chief executive may employ emergency or casual employees or
laborers paid on a daily wage or piecework basis and hired through
job orders for local projects authorized by the sanggunian
concerned, without need of approval or attestation by the Civil
Service Commission: Provided, further, That the period of
employment of emergency or casual laborers as provided in this
Section shall not exceed six (6) months.
The Joint Commission on Local Government Personnel
Administration organized pursuant to Presidential Decree
Numbered Eleven Hundred thirty-six (P.D. No. 1136) is hereby
abolished and its personnel, records, equipment and other assets
transferred to the appropriate office in the Civil Service Commission.
Section 78. Civil Service Law, Rules and Regulations, and Other
Related Issuances. - All matters pertinent to human resources and
development in local government units shall be governed by the civil
service law and such rules and regulations and other issuances
promulgated pursuant thereto, unless otherwise specified in this
Code.
Section 79. Limitation to Appointments. - No person shall be
appointed in the career service of the local government if he is
related within the fourth civil degree of consanguinity or affinity to the
appointing or recommending authority.
Section 80. Public Notice of Vacancy; Personnel Selection Board. -
(a) Whenever a local executive decides to fill a vacant career
position, there shall be posted notices of the vacancy in at least three
(3) conspicuous public places in the local government unit
concerned for a period of not less than fifteen (15) days.
(b) There shall be established in every province, city or municipality
a personnel selection board to assist the local chief executive in the
judicious and objective selection or personnel for employment as
well as for promotion, and in the formulation of such policies as
would contribute to employee welfare.
(c) The personnel selection board shall be headed by the local chief
executive, and its members shall be determined by resolution of the
sanggunian concerned. A representative of the Civil Service
Commission, if any, and the personnel officer of the local
government unit concerned shall be ex officio members of the board.
Section 81. Compensation of Local Officials and Employees. - The
compensation of local officials and personnel shall be determined by
the sanggunian concerned: Provided, That the increase in
compensation of elective local officials shall take effect only after the
terms of office of those approving such increase shall have expired:
Provided, further, That the increase in compensation of the
appointive officials and employees shall take effect as provided in
the ordinance authorizing such increase: Provided, however, That
said increases shall not exceed the limitations on budgetary
allocations for personal services provided under Title Five, Book II
of this Code: Provided, finally, That such compensation may be
based upon the pertinent provisions of Republic Act Numbered
Sixty-seven fifty-eight (R.A. No 6758), otherwise known as the
"Compensation and Position Classification Act of 1989".
The punong barangay, the sangguniang barangay member, the
sangguniang kabataan chairman, the barangay treasurer, and the
barangay secretary shall be entitled to such compensation,
allowances, emoluments, and such other privileges as provided
under Title One Book III of this Code.
Elective local officials shall be entitled to the same leave privileges
as those enjoyed by appointive local officials, including the
cumulation and commutation thereof.
Section 82. Resignation of Elective Local Officials.
(a) Resignations by elective local officials shall be deemed effective
only upon acceptance by the following authorities:
(1) The President, in the case of governors, vice-governors, and
mayors and vice-mayors of highly urbanized cities and independent
component cities;
(2) The governor, in the case of municipal mayors, municipal vice-
mayors, city mayors and city vice-mayors of component cities;
(3) The sanggunian concerned, in the case of sanggunian members;
and
(4) The city or municipal mayor, in the case of barangay officials.
(b) Copies of the resignation letters of elective local officials,
together with the action taken by the aforesaid authorities, shall be
furnished the Department of the Interior and Local Government.
(c) The resignation shall be deemed accepted if not acted upon by
the authority concerned within fifteen (15) days from receipt thereof.
(d) Irrevocable resignations by sanggunian members shall be
deemed accepted upon presentation before an open session of the
sanggunian concerned and duly entered in its records: Provided,
however, That this subsection does not apply to sanggunian
members who are subject to recall elections or to cases where
existing laws prescribed the manner of acting upon such
resignations.
Section 83. Grievance Procedure. - In every local government unit,
the local chief executive shall establish a procedure to inquire into,
act upon, resolve or settle complaints and grievances presented by
local government employees.
Section 84. Administrative Discipline. - Investigation and
adjudication of administrative complaints against appointive local
officials and employees as well as their suspension and removal
shall be in accordance with the civil service law and rules and other
pertinent laws. The results of such administrative investigations shall
be reported to the Civil Service Commission.
Section 85. Preventive Suspension of Appointive Local
Officials and Employees. -
(a) The local chief executives may preventively suspend for a period
not exceeding sixty (60) days and subordinate official or employee
under his authority pending investigation if the charge against such
official or employee involves dishonesty, oppression or grave
misconduct or neglect in the performance of duty, or if there is
reason to believe that the respondent is guilty of the charges which
would warrant his removal from the service.
(b) Upon expiration of the preventive suspension, the suspended
official or employee shall be automatically reinstated in office without
prejudice to the continuation of the administrative proceedings
against him until its termination. If the delay in the proceedings of
the case is due to the fault, neglect or request of the respondent, the
time of the delay shall not be counted in computing the period of
suspension herein provided.
Section 86. Administrative Investigation. - In any local government
unit, administrative investigation may be conducted by a person or
a committee duly authorized by the local chief executive. Said
person or committee shall conduct hearings on the cases brought
against appointive local officials and employees and submit their
findings and recommendations to the local chief executive
concerned within fifteen (15) days from the conclusion of the
hearings. The administrative cases herein mentioned shall be
decided within ninety (90) days from the time the respondent is
formally notified of the charges.
Section 87. Disciplinary Jurisdiction. - Except as otherwise provided
by law, the local chief executive may impose the penalty of removal
from service, demotion in rank, suspension for not more than one
(1) year without pay, fine in an amount not exceeding six (6) months
salary, or reprimand and otherwise discipline subordinate officials
and employees under his jurisdiction. If the penalty imposed is
suspension without pay for not more than thirty (30) days, his
decision shall be final. If the penalty imposed is heavier than
suspension of thirty (30) days, the decision shall be appealable to
the Civil Service Commission, which shall decide the appeal within
thirty (30) days from receipt thereof.
Section 88. Execution Pending Appeal. - An appeal shall not prevent
the execution of a decision of removal or suspension of a
respondent-appellant. In case the respondent-appellant is
exonerated, he shall be reinstated to his position with all the rights
and privileges appurtenant thereto from the time he had been
deprived thereof.
Section 89. Prohibited Business and Pecuniary Interest. -
(a) It shall be unlawful for any local government official or employee,
directly or indirectly, to:
(1) Engage in any business transaction with the local government
unit in which he is an official or employee or over which he has the
power of supervision, or with any of its authorized boards, officials,
agents, or attorneys, whereby money is to be paid, or property or
any other thing of value is to be transferred, directly or indirectly, out
of the resources of the local government unit to such person or firm;
(2) Hold such interests in any cockpit or other games licensed by a
local government unit;
(3) Purchase any real estate or other property forfeited in favor of
such local government unit for unpaid taxes or assessment, or by
virtue of a legal process at the instance of the said local government
unit;
(4) Be a surety for any person contracting or doing business with the
local government unit for which a surety is required; and
(5) Possess or use any public property of the local government unit
for private purposes.
(b) All other prohibitions governing the conduct of national public
officers relating to prohibited business and pecuniary interest so
provided for under Republic Act Numbered Sixty-seven thirteen
(R.A. No. 6713) otherwise known as the "Code of Conduct and
Ethical Standards for Public Officials and Employees" and other
laws shall also be applicable to local government officials and
employees.
Section 90. Practice of Profession. -
(a) All governors, city and municipal mayors are prohibited from
practicing their profession or engaging in any occupation other than
the exercise of their functions as local chief executives.
(b) Sanggunian members may practice their professions, engage in
any occupation, or teach in schools except during session hours:
Provided, That sanggunian members who are also members of the
Bar shall not:
(1) Appear as counsel before any court in any civil case wherein a
local government unit or any office, agency, or instrumentality of the
government is the adverse party;
(2) Appear as counsel in any criminal case wherein an officer or
employee of the national or local government is accused of an
offense committed in relation to his office.
(3) Collect any fee for their appearance in administrative
proceedings involving the local government unit of which he is an
official; and
(4) Use property and personnel of the government except when the
sanggunian member concerned is defending the interest of the
government.
(c) Doctors of medicine may practice their profession even during
official hours of work only on occasions of emergency: Provided,
That the officials concerned do not derive monetary compensation
therefrom.
Section 91. Statement of Assets and Liabilities. - (a) Officials and
employees of local government units shall file sworn statements of
assets, liabilities and net worth, lists of relatives within the fourth civil
degree of consanguinity or affinity in government service, financial
and business interests, and personnel data sheets as required by
law.
Section 92. Oath of Office. - (a) All elective and appointive local
officials and employees shall, upon assumption to office, subscribe
to an oath or affirmation of office in the prescribed form. The oath or
affirmation of office shall be filed with the office of the local chief
executive concerned. A copy of the oath or affirmation of office of all
elective and appointive local officials and employees shall be
preserved in the individual personal records file under the custody
of the personnel office, division, or section of the local government
unit concerned.
Section 93. Partisan Political Activity. - No local official or employee
in the career civil service shall engage directly or indirectly in any
partisan political activity or take part in any election, initiative,
referendum, plebiscite, or recall, except to vote, nor shall he use his
official authority or influence to cause the performance of any
political activity by any person or body. He may, however, express
his views on current issues, or mention the names of certain
candidates for public office whom he supports. Elective local officials
may take part in partisan political and electoral activities, but it shall
be unlawful for them to solicit contributions from their subordinates
or subject these subordinates to any of the prohibited acts under the
Omnibus Election Code.
Section 94. Appointment of Elective and Appointive Local Officials;
Candidates Who Lost in an Election. - (a) No elective or appointive
local official shall be eligible for appointment or designation in any
capacity to any public office or position during his tenure.
Unless otherwise allowed by law or by the primary functions of his
position, no elective or appointive local official shall hold any other
office or employment in the government or any subdivision, agency
or instrumentality thereof, including government-owned or controlled
corporations or their subsidiaries.
Section 95. Additional or Double Compensation. - No elective or
appointive local official or employee shall receive additional, double,
or indirect compensation, unless specifically authorized by law, nor
accept without the consent of Congress, any present, emoluments,
office, or title of any kind from any foreign government. Pensions or
gratuities shall not be considered as additional, double, or indirect
compensation.
Section 96. Permission to Leave Station. -
(a) Provincial, city, municipal, and barangay appointive officials
going on official travel shall apply and secure written permission
from their respective local chief executives before departure. The
application shall specify the reasons for such travel, and the
permission shall be given or withheld based on considerations of
public interest, financial capability of the local government unit
concerned and urgency of the travel.
Should the local chief executive concerned fall to act upon such
application within four (4) working days from receipt thereof, it shall
be deemed approved.
(b) Mayors of component cities and municipalities shall secure the
permission of the governor concerned for any travel outside the
province.
(c) Local government officials traveling abroad shall notify their
respective sanggunian: Provided, That when the period of travel
extends to more than three (3) months, during periods of emergency
or crisis or when the travel involves the use of public funds,
permission from the Office of the President shall be secured.
(d) Field officers of national agencies or offices assigned in
provinces, cities, and municipalities shall not leave their official
stations without giving prior written notice to the local chief executive
concerned. Such notice shall state the duration of travel and the
name of the officer whom he shall designate to act for and in his
behalf during his absence.
Section 97. Annual Report. - On or before March 31 of each year,
every local chief executive shall submit an annual report to the
sanggunian concerned on the socio-economic, political and peace
and order conditions, and other matters concerning the local
government unit, which shall cover the immediately preceding
calendar year. A copy of the report shall be forwarded to the
Department of the Interior and Local Government. Component cities
and municipalities shall likewise provide the sangguniang
panlalawigan copies of their respective annual reports.
TITLE IV
LOCAL SCHOOL BOARDS
Section 98. Creation, Composition, and Compensation. -
(a) There shall be established in every province, city, or municipality
a provincial, city, or municipal school board, respectively.
(b) The composition of local school boards shall be as follows:
(1) The provincial school board shall be composed of the governor
and the division superintendent of schools as co-chairman; the
chairman of the education committee of the sangguniang
panlalawigan, the provincial treasurer, the representative of the
"pederasyon ng mga sangguniang kabataan" in the sangguniang
panlalawigan, the duly elected president of the provincial federation
of parents-teachers associations, the duly elected representative of
the teachers' organizations in the province, and the duly elected
representative of the non-academic personnel of public schools in
the province, as members;
(2) The city school board shall be composed of the city mayor and
the city superintendent of schools as co-chairmen; the chairman of
the education committee of the sangguniang panlungsod, the city
treasurer, the representative of the "pederasyon ng mga
sangguniang kabataan" in the sangguniang panlungsod, the duly
elected president of the city federation of parents- teachers
associations, the duly elected representative of the teachers'
organizations in the city, and the duly elected representative of the
non-academic personnel of public schools in the city, as members;
and
(3) The municipal school board shall be composed of the municipal
mayor and the district supervisor of schools as co-chairmen; the
chairman of the education committee of the sangguniang bayan, the
municipal treasurer, the representative of the "pederasyon ng mga
sangguniang kabataan" in the sangguniang bayan, the duly elected
president of the municipal federation of parent-teacher associations,
the duly elected representative of the teachers' organizations in the
municipality, and the duly elected representative of the non-
academic personnel of public schools in the municipality, as
members.
(c) In the event that a province or city has two (2) or more school
superintendents, and in the event that a municipality has two (2) or
more district supervisors, the co-chairman of the local school board
shall be determined as follows:
(1) The Department of Education, Culture and Sports shall designate
the co-chairman for the provincial and city school boards; and
(2) The division superintendent of schools shall designate the district
supervisor who shall serve as co-chairman of the municipal school
board.
(d) The performance of the duties and responsibilities of the
abovementioned officials in their respective local school boards shall
not be delegated.
Section 99. Functions of Local School Boards. - The provincial, city
or municipal school board shall:
(a) Determine, in accordance with the criteria set by the Department
of Education, Culture and Sports, the annual supplementary
budgetary needs for the operation and maintenance of public
schools within the province, city, or municipality, as the case may
be, and the supplementary local cost of meeting such as needs,
which shall be reflected in the form of an annual school board budget
corresponding to its share of the proceeds of the special levy on real
property constituting the Special Education Fund and such other
sources of revenue as this Code and other laws or ordinances may
provide;
(b) Authorize the provincial, city or municipal treasurer, as the case
may be, to disburse funds from the Special Education Fund pursuant
to the budget prepared and in accordance with existing rules and
regulations;
(c) Serve as an advisory committee to the sanggunian concerned on
educational matters such as, but not limited to, the necessity for and
the uses of local appropriations for educational purposes; and
(d) Recommend changes in the names of public schools within the
territorial jurisdiction of the local government unit for enactment by
the sanggunian concerned.
The Department of Education, Culture and Sports shall consult the
local school board on the appointment of division superintendents,
district supervisors, school principals, and other school officials.
Section 100. Meetings and Quorum; Budget. -
(a) The local school board shall meet at least once a month or as
often as may be necessary.
(b) Any of the co-chairmen may call a meeting. A majority of all its
members shall constitute a quorum. However, when both co-
chairmen are present in a meeting, the local chief executive
concerned, as a matter of protocol, shall be given preference to
preside over the meeting. The division superintendent, city
superintendent or district supervisor, as the case may be, shall
prepare the budget of the school board concerned. Such budget
shall be supported by programs, projects, and activities of the school
board for the ensuing fiscal year. The affirmative vote of the majority
of all the members shall be necessary to approve the budget.
(c) The annual school board budget shall give priority to the
following:
(1) Construction, repair, and maintenance of school buildings and
other facilities of public elementary and secondary schools;
(2) Establishment and maintenance of extension classes where
necessary; and
(3) Sports activities at the division, district, municipal, and barangay
levels.
Section 101. Compensation and Remuneration. - The co-chairmen
and members of the provincial, city or municipal school board shall
perform their duties as such without compensation or remuneration.
Members thereof who are not government officials or employees
shall be entitled to necessary traveling expenses and allowances
chargeable against the funds of the local school board concerned,
subject to existing accounting and auditing rules and regulations.
TITLE V
LOCAL HEALTH BOARDS
Section 102. Creation and Composition. -
(a) There shall be established a local health board in every province,
city, or municipality. The composition of the local health boards shall
be as follows:
(1) The provincial health board shall be headed by the governor as
chairman, the provincial health officer as vice-chairman, and the
chairman of the committee on health of the sangguniang
panlalawigan, a representative from the private sector or non-
governmental organizations involved in health services, and a
representative of the Department of Health in the province, as
members;
(2) The city health board shall be headed by the city mayor as
chairman, the city health officer as vice-chairman, and the chairman
of the committee on health of the sangguniang panlungsod, a
representative from the private sector or non-governmental
organizations involved in health services, and a representative of the
Department of Health in the city, as members; and
(3) The municipal health board shall be headed by the municipal
mayor as chairman, the municipal health officer as vice-chairman,
and the chairman of the committee on health of the sangguniang
bayan, a representative from the private sector or non-governmental
organizations involved in health services, and a representative of the
Department of Health in the municipality, as members.
(b) The functions of the local health board shall be:
(1) To propose to the sanggunian concerned, in accordance with
standards and criteria set by the Department of Health, annual
budgetary allocations for the operation and maintenance of health
facilities and services within the municipality, city or province, as the
case may be;
(2) To serve as an advisory committee to the sanggunian concerned
on health matters such as, but not limited to, the necessity for, and
application of local appropriations for public health purposes; and
(3) Consistent with the technical and administrative standards of the
Department of Health, create committees which shall advise local
health agencies on matters such as, but not limited to, personnel
selection and promotion, bids and awards, grievance and
complaints, personnel discipline, budget review, operations review
and similar functions.
Section 103. Meetings and Quorum. -
(a) The board shall meet at least once a month or as may be
necessary.
(b) A majority of the members of the board shall constitute a quorum,
but the chairman or the vice- chairman must be present during
meetings where budgetary proposals are being prepared or
considered. The affirmative vote of all the majority of the members
shall be necessary to approve such proposals.
Section 104. Compensation and Remuneration. - The chairman,
vice-chairman, and members of the provincial, city or municipal
health board shall perform their duties as such without
compensation or remuneration. Members thereof who are not
government officials or employees shall be entitled to necessary
traveling expenses and allowances chargeable against the funds of
the local health board concerned, subject to existing accounting and
auditing rules and regulations.
Section 105. Direct National Supervision and Control by the
Secretary of Health. - In cases of epidemics, pestilence, and other
widespread public health dangers, the Secretary of Health may,
upon the direction of the President and in consultation with the local
government unit concerned, temporarily assume direct supervision
and control over health operations in any local government unit for
the duration of the emergency, but in no case exceeding a
cumulative period of six (6) months. With the concurrence of the
government unit concerned, the period for such direct national
control and supervision may be further extended.
TITLE VI
LOCAL DEVELOPMENT COUNCILS
Section 106. Local Development Councils. - (a) Each local
government unit shall have a comprehensive multi-sectoral
development plan to be initiated by its development council and
approved by its sanggunian. For this purpose, the development
council at the provincial, city, municipal, or barangay level, shall
assist the corresponding sanggunian in setting the direction of
economic and social development, and coordinating development
efforts within its territorial jurisdiction.
Section 107. Composition of Local Development Councils. - The
composition of the local development council shall be as follows:
(1) Members of the sangguniang barangay;
(2) Representatives of non-governmental organizations operating in
the barangay who shall constitute not less than one fourth (¼) of the
members of the fully organized council;
(3) A representative of the congressman.
(b) The city or municipal development council shall be headed by
the mayor and shall be composed of the following members:
(1) All punong barangays in the city or municipality;
(2) The chairman of the committee on appropriations of the
sangguniang panlungsod or sangguniang bayan concerned;
(3) The congressman or his representative; and
() Representatives of non-governmental organizations operating in
the city or municipality, as the case may be, who shall constitute not
less than one-fourth (¼) of the members of the fully organized
council.
(c) The provincial development council shall be headed by the
governor and shall be composed of the following members:
(1) All mayors of component cities and municipalities;
(2) The chairman of the committee on appropriations of the
sangguniang panlalawigan;
(3) The congressman or his representative; and
(4) Representatives of non-governmental organizations operating in
the province, who shall constitute not less than one-fourth (¼) of the
members of the fully organized council.
(d) The local development councils may call upon any local official
concerned or any official of national agencies or offices in the local
government unit to assist in the formulation of their respective
development plans and public investment programs.
Section 108. Representation of Non-governmental Organizations. -
Within a period of sixty (60) days from the start of organization of
local development councils, the non-governmental organizations
shall choose from among themselves their representatives to said
councils. The local sanggunian concerned shall accredit non-
governmental organizations subject to such criteria as may be
provided by law.
Section 109. Functions of Local Development Councils. -
(a) The provincial, city, and municipal development councils shall
exercise the following functions:
(1) Formulate long-term, medium-term, and annual socio-economic
development plans and policies;
(2) Formulate the medium-term and annual public investment
programs;
(3) Appraise and prioritize socio-economic development programs
and projects;
(4) Formulate local investment incentives to promote the inflow and
direction of private investment capital;
(5) Coordinate, monitor, and evaluate the implementation of
development programs and projects; and
(6) Perform such other functions as may be provided by law or
component authority.
(b) The barangay development council shall exercise the following
functions:
(1) Mobilize people's participation in local development efforts;
(2) Prepare barangay development plans based on local
requirements;
(3) Monitor and evaluate the implementation of national or local
programs and projects; and
(4) Perform such other functions as may be provided by law or
competent authority.
Section 110. Meetings and Quorum. - The local development council
shall meet at least once every six (6) months or as often as may be
necessary.
Section 111. Executive Committee. - The local development council
shall create an executive committee to represent it and act in its
behalf when it is not in session. The composition of the executive
committee shall be as follows:
(1) The executive committee of the provincial development council
shall be composed of the governor as chairman, the representative
of component city and municipal mayors to be chosen from among
themselves, the chairman of the committee on appropriations of the
sangguniang panlalawigan, the president of the provincial league of
barangays, and a representative of non-governmental organizations
that are represented in the council, as members;
(2) The executive committee of the city or municipal development
council shall be composed of the mayor as chairman, the chairman
of the committee on appropriations of the sangguniang
panlalawigan, the president of the city or municipal league of
barangays, and a representative of non-governmental organizations
that are represented in the council, as members; and
(3) The executive committee of the barangay development council
shall be composed of the punong barangay as chairman, a
representative of the sangguniang barangay to be chosen from
among its members, and a representative of non-governmental
organizations that are represented in the council, as members.
(b) The executive committee shall exercise the following powers and
functions:
(1) Ensure that the decision of the council are faithfully carried out
and implemented;
(2) Act on matters requiring immediate attention or action by the
council;
(3) Formulate policies, plans, and programs based on the general
principles laid down by the council; and
(4) Act on other matters that may be authorized by the council.
Section 112. Sectoral or Functional Committees. - The local
development councils may form sectoral or functional committees to
assist them in the performance of their functions.
Section 113. Secretariat. - There is hereby constituted for each local
development council a secretariat which shall be responsible for
providing technical support, documentation of proceedings,
preparation of reports and such other assistance as may be required
in the discharge of its functions. The local development council may
avail of the services of any non-governmental organization or
educational or research institution for this purpose.
The secretariats of the provincial, city, and municipal development
councils shall be headed by their respective planning and
development coordinators. The secretariat of the barangay
development council shall be headed by the barangay secretary who
shall be assisted by the city or municipal planning and development
coordinator concerned.
Section 114. Relation of Local Development Councils to the
Sanggunian and the Regional Development Council. -
(a) The policies, programs, and projects proposed by local
development councils shall be submitted to the sanggunian
concerned for appropriate action.
(b) The approved development plans of provinces, highly-urbanized
cities, and independent component cities shall be submitted to the
regional development council, which shall be integrated into the
regional development plan for submission to the National Economic
and Development Authority, in accordance with existing laws.
Section 115. Budget Information. - The Department of Budget and
Management shall furnish the various local development councils
information on financial resources and budgetary allocations
applicable to their respective jurisdictions to guide them in their
planning functions.
TITLE VII
LOCAL PEACE AND ORDER COUNCIL
Section 116. Organization. - There is hereby established in every
province, city and municipality a local peace and order council,
pursuant to Executive Order Numbered Three hundred nine (E.O.
No. 309), as amended, Series of 1988. The local peace and order
councils shall have the same composition and functions as those
prescribed by said executive order.
TITLE VIII
AUTONOMOUS SPECIAL ECONOMIC ZONES
Section 117. Establishment of Autonomous Special Economic
Zones. - The establishment by law of autonomous special economic
zones in selected areas of the country shall be subject to
concurrence by the local government units included therein.
TITLE IX
OTHER PROVISIONS APPLICABLE TO LOCAL GOVERNMENT
UNITS
CHAPTER I
Settlement of Boundary Disputes
Section 118. Jurisdictional Responsibility for Settlement of Boundary
Dispute. - Boundary disputes between and among local government
units shall, as much as possible, be settled amicably. To this end:
(a) Boundary disputes involving two (2) or more barangays in the
same city or municipality shall be referred for settlement to the
sangguniang panlungsod or sangguniang bayan concerned.
(b) Boundary disputes involving two (2) or more municipalities within
the same province shall be referred for settlement to the
sangguniang panlalawigan concerned.
(c) Boundary disputes involving municipalities or component cities
of different provinces shall be jointly referred for settlement to the
sanggunians of the province concerned.
(d) Boundary disputes involving a component city or municipality on
the one hand and a highly urbanized city on the other, or two (2) or
more highly urbanized cities, shall be jointly referred for settlement
to the respective sanggunians of the parties.
(e) In the event the sanggunian fails to effect an amicable settlement
within sixty (60) days from the date the dispute was referred thereto,
it shall issue a certification to that effect. Thereafter, the dispute shall
be formally tried by the sanggunian concerned which shall decide
the issue within sixty (60) days from the date of the certification
referred to above.
Section 119. Appeal. - Within the time and manner prescribed by the
Rules of Court, any party may elevate the decision of the
sanggunian concerned to the proper Regional Trial Court having
jurisdiction over the area in dispute. The Regional Trial Court shall
decide the appeal within one (1) year from the filing thereof. Pending
final resolution of the disputed area prior to the dispute shall be
maintained and continued for all legal purposes.
CHAPTER II
Local Initiative and Referendum
Section 120. Local Initiative Defined. - Local initiative is the legal
process whereby the registered voters of a local government unit
may directly propose, enact, or amend any ordinance.
Section 121. Who May Exercise. - The power of local initiative and
referendum may be exercised by all registered voters of the
provinces, cities, municipalities, and barangays.
Section 122. Procedure in Local Initiative. –
(a) Not less than one thousand (1,000) registered voters in case of
provinces and cities, one hundred (100) in case of municipalities,
and fifty (50) in case of barangays, may file a petition with the
sanggunian concerned proposing the adoption, enactment, repeal,
or amendment of an ordinance.
(b) If no favorable action thereon is taken by the sanggunian
concerned within thirty (30) days from its presentation, the
proponents, through their duly authorized and registered
representatives, may invoke their power of initiative, giving notice
thereof to the sanggunian concerned.
(c) The proposition shall be numbered serially starting from Roman
numeral I. The COMELEC or its designated representative shall
extend assistance in the formulation of the proposition.
(d) Two (2) or more propositions may be submitted in an initiative.
(e) Proponents shall have ninety (90) days in case of provinces and
cities, sixty (60) days in case of municipalities, and thirty (30) days
in case of barangays, from notice mentioned in subsection (b) hereof
to collect the required number of signatures. (f) The petition shall be
signed before the election registrar. or his designated
representatives, in the presence of a representative of the
proponent, and a representative of the sanggunian concerned in a
public place in the local government unit, as the case may be.
Stations for collecting signatures may be established in as many
places as may be warranted.
(g) Upon the lapse of the period herein provided, the COMELEC,
through its office in the local government unit concerned, shall certify
as to whether or not the required number of signatures has been
obtained. Failure to obtain the required number defeats the
proposition.
(h) If the required number of signatures is obtained, the COMELEC
shall then set a date for the initiative during which the proposition
shall be submitted to the registered voters in the local government
unit concerned for their approval within sixty (60) days from the date
of certification by the COMELEC, as provided in subsection (g)
hereof, in case of provinces and cities, forty-five (45) days in case of
municipalities, and thirty (30) days in case of barangays. The
initiative shall then be held on the date set, after which the results
thereof shall be certified and proclaimed by the COMELEC.
Section 123. Effectivity of Local Propositions. - If the proposition is
approved by a majority of the votes cast, it shall take effect fifteen
(15) days after certification by the COMELEC as if affirmative action
thereon had been made by the sanggunian and local chief executive
concerned. If it fails to obtain said number of votes, the proposition
is considered defeated.
Section 124. Limitations on Local Initiative. -
(a) The power of local initiative shall not be exercised more than
once a year.
(b) Initiative shall extend only to subjects or matters which are within
the legal powers of the sanggunian to enact.
(c) If at any time before the initiative is held, the sanggunian
concerned adopts in toto the proposition presented and the local
chief executive approves the same, the initiative shall be cancelled.
However, those against such action may, if they so desire, apply for
initiative in the manner herein provided.
Section 125. Limitations upon Sanggunians. - Any proposition or
ordinance approved through the system of initiative and referendum
as herein provided shall not be repealed, modified or amended by
the sanggunian concerned within six (6) months from the date of the
approval thereof, and may be amended, modified or repealed by the
sanggunian within three (3) years thereafter by a vote of three-
fourths (3/4) of all its members: Provided, That in case of barangays,
the period shall be eighteen (18) months after the approval thereof.
Section 126. Local Referendum Defined. - Local referendum is the
legal process whereby the registered voters of the local government
units may approve, amend or reject any ordinance enacted by the
sanggunian.
The local referendum shall be held under the control and direction
of the COMELEC within sixty (60) days in case of provinces and
cities, forty-five (45) days in case of municipalities and thirty (30)
days in case of barangays.
The COMELEC shall certify and proclaim the results of the said
referendum.
Section 127. Authority of Courts. - Nothing in this Chapter shall
prevent or preclude the proper courts from declaring null and void
any proposition approved pursuant to this Chapter for violation of the
Constitution or want of capacity of the sanggunian concerned to
enact the said measure.
BOOK II
LOCAL TAXATION AND FISCAL MATTERS
TITLE I
LOCAL GOVERNMENT TAXATION
CHAPTER I
General Provisions
Section 128. Scope. - The provisions herein shall govern the
exercise by provinces, cities, municipalities, and barangays of their
taxing and other revenue-raising powers.
Section 129. Power to Create Sources of Revenue. - Each local
government unit shall exercise its power to create its own sources
of revenue and to levy taxes, fees, and charges subject to the
provisions herein, consistent with the basic policy of local autonomy.
Such taxes, fees, and charges shall accrue exclusively to the local
government units.
Section 130. Fundamental Principles. - The following fundamental
principles shall govern the exercise of the taxing and other revenue-
raising powers of local government units:
(a) Taxation shall be uniform in each local government unit;
(b) Taxes, fees, charges and other impositions shall:
(1) be equitable and based as far as practicable on the taxpayer's
ability to pay;
(2) be levied and collected only for public purposes;
(3) not be unjust, excessive, oppressive, or confiscatory;
(4) not be contrary to law, public policy, national economic policy, or
in the restraint of trade;
(c) The collection of local taxes, fees, charges and other impositions
shall in no case be let to any private person;
(d) The revenue collected pursuant to the provisions of this Code
shall inure solely to the benefit of, and be subject to the disposition
by, the local government unit levying the tax, fee, charge or other
imposition unless otherwise specifically provided herein; and,
(e) Each local government unit shall, as far as practicable, evolve a
progressive system of taxation.
Section 131. Definition of Terms. - When used in this Title, the term:
(a) "Agricultural Product" includes the yield of the soil, such as corn,
rice, wheat, rye, hay. coconuts, sugarcane, tobacco, root crops,
vegetables, fruits, flowers, and their by-products; ordinary salt; all
kinds of fish; poultry; and livestock and animal products, whether in
their original form or not.
The phrase "whether in their original form or not" refers to the
transformation of said products by the farmer, fisherman, producer
or owner through the application of processes to preserve or
otherwise to prepare said products for market such as freezing,
drying, salting, smoking, or stripping for purposes of preserving or
otherwise preparing said products for market;
(b) "Amusement" is a pleasurable diversion and entertainment. It is
synonymous to relaxation, avocation, pastime, or fun;
(c) "Amusement Places" include theaters, cinemas, concert halls,
circuses and other places of amusement where one seeks
admission to entertain oneself by seeing or viewing the show or
performances;
(d) "Business" means trade or commercial activity regularly engaged
in as a means of livelihood or with a view to profit;
(e) "Banks and other financial institutions" include non-bank financial
intermediaries, lending investors, finance and investment
companies, pawnshops, money shops, insurance companies, stock
markets, stock brokers and dealers in securities and foreign
exchange, as defined under applicable laws, or rules and regulations
thereunder;
(f) "Capital Investment" is the capital which a person employs in any
undertaking, or which he contributes to the capital of a partnership,
corporation, or any other juridical entity or association in a particular
taxing jurisdiction;
(g) "Charges" refers to pecuniary liability, as rents or fees against
persons or property;
(h) "Contractor" includes persons, natural or juridical, not subject to
professional tax under Section 139 of this Code, whose activity
consists essentially of the sale of all kinds of services for a fee,
regardless of whether or not the performance of the service calls for
the exercise or use of the physical or mental faculties of such
contractor or his employees.
As used in this Section, the term "contractor" shall include general
engineering, general building and specialty contractors as defined
under applicable laws; filling, demolition and salvage works
contractors; proprietors or operators of mine drilling apparatus;
proprietors or operators of dockyards; persons engaged in the
installation of water system, and gas or electric light, heat, or power;
proprietors or operators of smelting plants, engraving, plating, and
plastic lamination establishments; proprietors or operators of
establishments for repairing, repainting, upholstering, washing or
greasing of vehicles, heavy equipment, vulcanizing, recapping and
battery charging; proprietors or operators of furniture shops and
establishments for planing or surfacing and recutting of lumber, and
sawmills under contract to saw or cut logs belonging to others;
proprietors or operators of dry cleaning or dyeing establishments,
steam laundries, and laundries using washing machines; proprietors
or owners of shops for the repair of any kind of mechanical and
electrical devices, instruments, apparatus, or furniture and shoe
repairing by machine or any mechanical contrivance; proprietors or
operators of establishments or lots for parking purposes; proprietors
or operators of tailor shops, dress shops, milliners and hatters,
beauty parlors, barbershops, massage clinics, sauna, Turkish and
Swedish baths, slenderizing and building salons and similar
establishments; photographic studios; funeral parlors; proprietors or
operators of hotels, motels, and lodging houses; proprietors or
operators of arrastre and stevedoring, warehousing, or forwarding
establishments; master plumbers, smiths, and house or sign
painters; printers, bookbinders, lithographers; publishers except
those engaged in the publication or printing of any newspaper,
magazine, review or bulletin which appears at regular intervals with
fixed prices for subscription and sale and which is not devoted
principally to the publication and advertisements; business agents,
private detective or watchman agencies, commercial and
immigration brokers, and cinematographic film owners, lessors and
distributors.
(i) "Corporation" includes partnerships, no matter how created or
organized, joint-stock companies, joint accounts (cuentas en
participacion), associations or insurance companies but does not
include general professional partnerships and a joint venture or
consortium formed for the purpose of undertaking construction
projects or engaging in petroleum, coal, geothermal, and other
energy operations pursuant to an operating or consortium
agreement under a service contract with the government. General
professional partnership are partnerships formed by persons for the
sole purpose of exercising their common profession, no part of the
income of which is derived from engaging in any trade or business.
The term "resident foreign" when applied to a corporation means a
foreign corporation not otherwise organized under the laws of the
Philippines but engaged in trade or business within the Philippines;
(j) "Countryside and Barangay Business Enterprise" refers to any
business entity, association, or cooperative registered under the
provisions of Republic Act Numbered Sixty-eight hundred ten (R.A.
No. 6810), otherwise known as "Magna Carta For Countryside And
Barangay Business Enterprises (Kalakalan 20)";
(k) "Dealer" means one whose business is to buy and sell
merchandise, goods, and chattels as a merchant. He stands
immediately between the producer or manufacturer and the
consumer and depends for his profit not upon the labor he bestows
upon his commodities but upon the skill and foresight with which he
watches the market;
(l) "Fee" means a charge fixed by law or ordinance for the regulation
or inspection of a business or activity;
(m) "Franchise" is a right or privilege, affected with public interest
which is conferred upon private persons or corporations, under such
terms and conditions as the government and its political subdivisions
may impose in the interest of public welfare, security, and safety;
(n) "Gross Sales or Receipts" include the total amount of money or
its equivalent representing the contract price, compensation or
service fee, including the amount charged or materials supplied with
the services and deposits or advance payments actually or
constructively received during the taxable quarter for the services
performed or to be performed for another person excluding
discounts if determinable at the time of sales, sales return, excise
tax, and value-added tax (VAT);
(o) "Manufacturer" includes every person who, by physical or
chemical process, alters the exterior texture or form or inner
substance of any raw material or manufactured or partially
manufactured product in such manner as to have been put in its
original condition, or who by any such process alters the quality of
any such raw material or manufactured or partially manufactured
products so as to reduce it to marketable shape or prepare it for any
of the use of industry, or who by any such process combines any
such raw material or manufactured or partially manufactured
products with other materials or products of the same or of different
kinds and in such manner that the finished products of such process
or manufacture can be put to a special use or uses to which such
raw material or manufactured or partially manufactured products in
their original condition could not have been put, and who in addition
alters such raw material or manufactured or partially manufactured
products, or combines the same to produce such finished products
for the purpose of their sale or distribution to others and not for his
own use or consumption;
(p) "Marginal Farmer or Fisherman" refers to an individual engaged
in subsistence farming or fishing which shall be limited to the sale,
barter or exchange of agricultural or marine products produced by
himself and his immediate family;
(q) "Motor Vehicle" means any vehicle propelled by any power other
than muscular power using the public roads, but excluding road
rollers, trolley cars, street-sweepers, sprinklers, lawn mowers,
bulldozers, graders, fork-lifts, amphibian trucks, and cranes if not
used on public roads, vehicles which run only on rails or tracks, and
tractors, trailers, and traction engines of all kinds used exclusively
for agricultural purposes;
(r) "Municipal Waters" includes not only streams, lakes, and tidal
waters within the municipality, not being the subject of private
ownership and not comprised within the national parks, public forest,
timber lands, forest reserves or fishery reserves, but also marine
waters included between two lines drawn perpendicularly to the
general coastline from points where the boundary lines of the
municipality or city touch the sea at low tide and a third line parallel
with the general coastline and fifteen (15) kilometers from it. Where
two (2) municipalities are so situated on the opposite shores that
there is less than fifteen (15) kilometers of marine waters between
them, the third line shall be equally distant from opposite shores of
their respective municipalities;
(s) "Operator" includes the owner, manager, administrator, or any
other person who operates or is responsible for the operation of a
business establishment or undertaking;
(t) "Peddler" means any person who, either for himself or on
commission, travels from place to place and sells his goods or offers
to sell and deliver the same. Whether a peddler is a wholesale
peddler or a retail peddler of a particular commodity shall be
determined from the definition of wholesale dealer or retail dealer as
provided in this Title;
(u) "Persons" means every natural or juridical being, susceptible of
rights and obligations or of being the subject of legal relations;
(v) "Residents" refer to natural persons who have their habitual
residence in the province, city, or municipality where they exercise
their civil rights and fulfill their civil obligations, and to juridical
persons for which the law or any other provisions creating or
recognizing them fixes their residence in a particular province, city,
or municipality. In the absence of such law, juridical persons are
residents of the province, city, or municipality where they have their
legal residence or principal place of business or where they conduct
their principal business or occupation;
(w) "Retail" means a sale where the purchaser buys the commodity
for his own consumption, irrespective of the quantity of the
commodity sold;
(x) "Vessel" includes every type of boat, craft, or other artificial
contrivance used, or capable of being used, as a means of
transportation on water;
(y) "Wharfage" means a fee assessed against the cargo of a vessel
engaged in foreign or domestic trade based on quantity, weight, or
measure received and/or discharged by vessel; and
(z) "Wholesale" means a sale where the purchaser buys or imports
the commodities for resale to persons other than the end user
regardless of the quantity of the transaction.
Section 132. Local Taxing Authority. - The power to impose a tax,
fee, or charge or to generate revenue under this Code shall be
exercised by the sanggunian of the local government unit concerned
through an appropriate ordinance.
Section 133. Common Limitations on the Taxing Powers of Local
Government Units. - Unless otherwise provided herein, the exercise
of the taxing powers of provinces, cities, municipalities, and
barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial
institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies and other
acquisitions mortis causa, except as otherwise provided herein;
(d) Customs duties, registration fees of vessel and wharfage on
wharves, tonnage dues, and all other kinds of customs fees, charges
and dues except wharfage on wharves constructed and maintained
by the local government unit concerned;
(e) Taxes, fees, and charges and other impositions upon goods
carried into or out of, or passing through, the territorial jurisdictions
of local government units in the guise of charges for wharfage, tolls
for bridges or otherwise, or other taxes, fees, or charges in any form
whatsoever upon such goods or merchandise;
(f) Taxes, fees or charges on agricultural and aquatic products when
sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified to by the Board of
Investments as pioneer or non-pioneer for a period of six (6) and
four (4) years, respectively from the date of registration;
(h) Excise taxes on articles enumerated under the national Internal
Revenue Code, as amended, and taxes, fees or charges on
petroleum products;
(i) Percentage or value-added tax (VAT) on sales, barters or
exchanges or similar transactions on goods or services except as
otherwise provided herein;
(j) Taxes on the gross receipts of transportation contractors and
persons engaged in the transportation of passengers or freight by
hire and common carriers by air, land or water, except as provided
in this Code;
(k) Taxes on premiums paid by way or reinsurance or retrocession;
(l) Taxes, fees or charges for the registration of motor vehicles and
for the issuance of all kinds of licenses or permits for the driving
thereof, except tricycles;
(m) Taxes, fees, or other charges on Philippine products actually
exported, except as otherwise provided herein;
(n) Taxes, fees, or charges, on Countryside and Barangay Business
Enterprises and cooperatives duly registered under R.A. No. 6810
and Republic Act Numbered Sixty-nine hundred thirty-eight (R.A.
No. 6938) otherwise known as the "Cooperative Code of the
Philippines" respectively; and
(o) Taxes, fees or charges of any kind on the National Government,
its agencies and instrumentalities, and local government units.
CHAPTER II
Specific Provisions on the Taxing and Other Revenue-Raising
Powers of Local Government Units
ARTICLE I
Provinces
Section 134. Scope of Taxing Powers. - Except as otherwise
provided in this Code, the province may levy only the taxes, fees,
and charges as provided in this Article.
Section 135. Tax on Transfer of Real Property Ownership.
(a) The province may impose a tax on the sale , donation, barter, or
on any other mode of transferring ownership or title of real property
at the rate of not more than fifty percent (50%) of the one percent
(1%) of the total consideration involved in the acquisition of the
property or of the fair market value in case the monetary
consideration involved in the transfer is not substantial, whichever is
higher. The sale, transfer or other disposition of real property
pursuant to R.A. No. 6657 shall be exempt from this tax.
(b) For this purpose, the Register of Deeds of the province
concerned shall, before registering any deed, require the
presentation of the evidence of payment of this tax. The provincial
assessor shall likewise make the same requirement before
cancelling an old tax declaration and issuing a new one in place
thereof, Notaries public shall furnish the provincial treasurer with a
copy of any deed transferring ownership or title to any real property
within thirty (30) days from the date of notarization.
It shall be the duty of the seller, donor, transferor, executor or
administrator to pay the tax herein imposed within sixty (60) days
from the date of the execution of the deed or from the date of the
decedent's death.
Section 136. Tax on Business of Printing and Publication. - The
province may impose a tax on the business of persons engaged in
the printing and/or publication of books, cards, posters, leaflets,
handbills, certificates, receipts, pamphlets, and others of similar
nature, at a rate not exceeding fifty percent (50%) of one percent
(1%) of the gross annual receipts for the preceding calendar year.
In the case of a newly started business, the tax shall not exceed one-
twentieth (1/20) of one percent (1%) of the capital investment. In the
succeeding calendar year, regardless of when the business started
to operate, the tax shall be based on the gross receipts for the
preceding calendar year, or any fraction thereof, as provided herein.
The receipts from the printing and/or publishing of books or other
reading materials prescribed by the Department of Education,
Culture and Sports as school texts or references shall be exempt
from the tax herein imposed.
Section 137. Franchise Tax. - Notwithstanding any exemption
granted by any law or other special law, the province may impose a
tax on businesses enjoying a franchise, at the rate not exceeding
fifty percent (50%) of one percent (1%) of the gross annual receipts
for the preceding calendar year based on the incoming receipt, or
realized, within its territorial jurisdiction.
In the case of a newly started business, the tax shall not exceed one-
twentieth (1/20) of one percent (1%) of the capital investment. In the
succeeding calendar year, regardless of when the business started
to operate, the tax shall be based on the gross receipts for the
preceding calendar year, or any fraction thereon, as provided herein.
Section 138. Tax on Sand, Gravel and Other Quarry Resources. -
The province may levy and collect not more than ten percent (10%)
of fair market value in the locality per cubic meter of ordinary stones,
sand, gravel, earth, and other quarry resources, as defined under
the National Internal Revenue Code, as amended, extracted from
public lands or from the beds of seas, lakes, rivers, streams, creeks,
and other public waters within its territorial jurisdiction.
The permit to extract sand, gravel and other quarry resources shall
be issued exclusively by the provincial governor, pursuant to the
ordinance of the sangguniang panlalawigan.
The proceeds of the tax on sand, gravel and other quarry resources
shall be distributed as follows:
(1) Province - Thirty percent (30%);
(2) Component City or Municipality where the sand, gravel, and
other quarry resources are extracted - Thirty percent (30%); and
(3) Barangay where the sand, gravel, and other quarry resources
are extracted - Forty percent (40%).
Section 139. Professional Tax. -
(a) The province may levy an annual professional tax on each
person engaged in the exercise or practice of his profession
requiring government examination at such amount and reasonable
classification as the sangguniang panlalawigan may determine but
shall in no case exceed Three hundred pesos (P300.00).
(b) Every person legally authorized to practice his profession shall
pay the professional tax to the province where he practices his
profession or where he maintains his principal office in case he
practices his profession in several places: Provided, however, That
such person who has paid the corresponding professional tax shall
be entitled to practice his profession in any part of the Philippines
without being subjected to any other national or local tax, license, or
fee for the practice of such profession.
(c) Any individual or corporation employing a person subject to
professional tax shall require payment by that person of the tax on
his profession before employment and annually thereafter.
(d) The professional tax shall be payable annually, on or before the
thirty-first (31st) day of January. Any person first beginning to
practice a profession after the month of January must, however, pay
the full tax before engaging therein. A line of profession does not
become exempt even if conducted with some other profession for
which the tax has been paid. Professionals exclusively employed in
the government shall be exempt from the payment of this tax.
(e) Any person subject to the professional tax shall write in deeds,
receipts, prescriptions, reports, books of account, plans and
designs, surveys and maps, as the case may be, the number of the
official receipt issued to him.
Section 140. Amusement Tax. -
(a) The province may levy an amusement tax to be collected from
the proprietors, lessees, or operators of theaters, cinemas, concert
halls, circuses, boxing stadia, and other places of amusement at a
rate of not more than thirty percent (30%) of the gross receipts from
admission fees.
(b) In the case of theaters or cinemas, the tax shall first be deducted
and withheld by their proprietors, lessees, or operators and paid to
the provincial treasurer before the gross receipts are divided
between said proprietors, lessees, or operators and the distributors
of the cinematographic films.
(c) The holding of operas, concerts, dramas, recitals, painting and
art exhibitions, flower shows, musical programs, literary and
oratorical presentations, except pop, rock, or similar concerts shall
be exempt from the payment of the tax hereon imposed.
(d) The sangguniang panlalawigan may prescribe the time, manner,
terms and conditions for the payment of tax. In case of fraud or
failure to pay the tax, the sangguniang panlalawigan may impose
such surcharges, interest and penalties as it may deem appropriate.
(e) The proceeds from the amusement tax shall be shared equally
by the province and the municipality where such amusement places
are located.
Section 141. Annual Fixed Tax For Every Delivery Truck or Van of
Manufacturers or Producers, Wholesalers of, Dealers, or Retailers
in, Certain Products. -
(a) The province may levy an annual fixed tax for every truck, van or
any vehicle used by manufacturers, producers, wholesalers, dealers
or retailers in the delivery or distribution of distilled spirits, fermented
liquors, soft drinks, cigars and cigarettes, and other products as may
be determined by the sangguniang panlalawigan, to sales outlets, or
consumers, whether directly or indirectly, within the province in an
amount not exceeding Five hundred pesos (P500.00).
(b) The manufacturers, producers, wholesalers, dealers and
retailers referred to in the immediately foregoing paragraph shall be
exempt from the tax on peddlers prescribed elsewhere in this Code.
ARTICLE II
Municipalities
Section 142. Scope of Taxing Powers. - Except as otherwise
provided in this Code, municipalities may levy taxes, fees, and
charges not otherwise levied by provinces.
Section 143. Tax on Business. - The municipality may impose taxes
on the following businesses:
(a) On manufacturers, assemblers, repackers, processors, brewers,
distillers, rectifiers, and compounders of liquors, distilled spirits, and
wines or manufacturers of any article of commerce of whatever kind
or nature, in accordance with the following schedule:
With gross sales or receipts for the preceding calendar year in the
amount of: Amount of Tax Per Annum
Less than 10,000.00 165.00
P 10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 202.00
20,000.00 or more but less than 30,000.00 440.00
30,000.00 or more but less than 40,000.00 660.00
40,000.00 or more but less than 50,000.00 825.00
50,000.00 or more but less than 75,000.00 1,320.00
75,000.00 or more but less than 100,000.00 1,650.00
100,000.00 or more but less than 150,000.00 2,200.00
150,000.00 or more but less than 200,000.00 2,750.00
200,000.00 or more but less than 300,000.00 3,850.00
300,000.00 or more but less than 500,000.00 5,500.00
500,000.00 or more but less than 750,000.00 8,000.00
750,000.00 or more but less than 1,000,000.00 10,000.00
1,000,000.00 or more but less than 2,000,000.00 13,750.00
2,000,000.00 or more but less than 3,000,000.00 16,500.00
3,000,000.00 or more but less than 4,000,000.00 19,000.00
4,000,000.00 or more but less than 5,000,000.00 23,100.00
5,000,000.00 or more but less than 6,500,000.00 24,375.00
6,000,000.00 or more at a rate not exceeding thirty-seven and a half
percent (37½%) of one percent (1%)
(b) On wholesalers, distributors, or dealers in any article of
commerce of whatever kind or nature in accordance with the
following schedule:
With gross sales or receipts for the preceding calendar year in the
amount of: Amount of Tax Per Annum
Less than 1,000.00 18.00
P 1,000.00 or more but less than 2,000.00 33.00
2,000.00 or more but less than 3,000.00 50.00
3,000.00 or more but less than 4,000.00 72.00
4,000.00 or more but less than 5,000.00 100.00
5,000.00 or more but less than 6,000.00 121.00
6,000.00 or more but less than 7,000.00 143.00
7,000.00 or more but less than 8,000.00 165.00
8,000.00 or more but less than 10,000.00 187.00
10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 275.00
20,000.00 or more but less than 30,000.00 330.00
30,000.00 or more but less than 40,000.00 440.00
40,000.00 or more but less than 50,000.00 660.00
50,000.00 or more but less than 75,000.00 990.00
75,000.00 or more but less than 100,000.00 1,320.00
100,000.00 or more but less than 150,000.00 1,870.00
150,000.00 or more but less than 200,000.00 2,420.00
200,000.00 or more but less than 300,000.00 3,300.00
300,000.00 or more but less than 500,000.00 4,400.00
500,000.00 or more but less than 750,000.00 6,600.00
750,000.00 or more but less than 1,000,000.00 8,800.00
1,000,000.00 or more but less than 2,000,000.00 10,000.00
2,000,000.00 or more at a rate not exceeding fifty percent (50%) of
one percent (1%).
(c) On exporters, and on manufacturers , millers, producers,
wholesalers, distributors, dealers or retailers of essential
commodities enumerated hereunder at a rate not exceeding one-
half (½) of the rates prescribed under subsection (a), (b) and (d) of
this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy products, locally
manufactured, processed or preserved food, sugar, salt and other
agricultural, marine, and fresh water products, whether in their
original state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicine;
(5) Agricultural implements. equipment and post-harvest facilities,
fertilizers, pesticides, insecticides, herbicides and other farm inputs;
(6) Poultry feeds and other animal feeds;
(7) School supplies; and
(8) Cement.
(d) On retailers.
With gross sales or receipts for the preceding calendar year in the
amount of: Rate of Tax Per Annum
P400,000.00 or less 2%
more than P400,000.00 1%
Provided, however, That barangays shall have the exclusive power
to levy taxes, as provided under Section 152 hereof, on gross sales
or receipts of the preceding calendar year of Fifty thousand pesos
(P50,000.00) or less, in the case of cities, and Thirty thousand pesos
(P30,000.00) or less, in the case of municipalities.
(e) On contractors and other independent contractors, in accordance
with the following schedule:
With gross sales or receipts for the preceding calendar year in the
amount of: Amount of Tax Per Annum
Less than 5,000.00 27.50
P 5,000.00 or more but less than P 10,000.00 61.60
10,000.00 or more but less than 15,000.00 104.50
15,000.00 or more but less than 20,000.00 165.00
20,000.00 or more but less than 30,000.00 275.00
30,000.00 or more but less than 40,000.00 385.00
40,000.00 or more but less than 50,000.00 550.00
50,000.00 or more but less than 75,000.00 880.00
75,000.00 or more but less than 100,000.00 1,320.00
100,000.00 or more but less than 150,000.00 1,980.00
150,000.00 or more but less than 200,000.00 2,640.00
200,000.00 or more but less than 250,000.00 3,630.00
250,000.00 or more but less than 300,000.00 4,620.00
300,000.00 or more but less than 400,000.00 6,160.00
400,000.00 or more but less than 500,000.00 8,250.00
500,000.00 or more but less than 750,000.00 9,250.00
750,000.00 or more but less than 1,000,000.00 10,250.00
1,000,000.00 or more but less than 2,000,000.00 11,500.00
2,000,000.00 or more at a rate not exceeding fifty percent (50%) of
one percent (1%)
(f) On banks and other financial institutions, at a rate not exceeding
fifty percent (50%) of one percent (1%) on the gross receipts of the
preceding calendar year derived from interest, commissions and
discounts from lending activities, income from financial leasing,
dividends, rentals on property and profit from exchange or sale of
property, insurance premium.
(g) On peddlers engaged in the sale of any merchandise or article of
commerce, at a rate not exceeding Fifty pesos (P50.00) per peddler
annually.
(h) On any business, not otherwise specified in the preceding
paragraphs, which the sanggunian concerned may deem proper to
tax: Provided, That on any business subject to the excise, value-
added or percentage tax under the National Internal Revenue Code,
as amended, the rate of tax shall not exceed two percent (2%) of
gross sales or receipts of the preceding calendar year.
The sanggunian concerned may prescribe a schedule of graduated
tax rates but in no case to exceed the rates prescribed herein.
Section 144. Rates of Tax within the Metropolitan Manila Area. - The
municipalities within the Metropolitan Manila Area may levy taxes at
rates which shall not exceed by fifty percent (50%) the maximum
rates prescribed in the preceding Section.
Section 145. Retirement of Business. - A business subject to tax
pursuant to the preceding sections shall, upon termination thereof,
submit a sworn statement of its gross sales or receipts for the current
year. If the tax paid during the year be less than the tax due on said
gross sales or receipts of the current year, the difference shall be
paid before the business is considered officially retired.
Section 146. Payment of Business Taxes. -
(a) The taxes imposed under Section 143 shall be payable for every
separate or distinct establishment or place where business subject
to the tax is conducted and one line of business does not become
exempt by being conducted with some other business for which such
tax has been paid. The tax on a business must be paid by the person
conducting the same.
(b) In cases where a person conducts or operates two (2) or more of
the businesses mentioned in Section 143 of this Code which are
subject to the same rate of tax, the tax shall be computed on the
combined total gross sales or receipts of the said two (2) or more
related businesses.
(c) In cases where a person conducts or operates two (2) or more
businesses mentioned in Section 143 of this Code which are subject
to different rates of tax, the gross sales or receipts of each business
shall be separately reported for the purpose of computing the tax
due from each business.
Section 147. Fees and Charges. - The municipality may impose and
collect such reasonable fees and charges on business and
occupation and, except as reserved to the province in Section 139
of this Code, on the practice of any profession or calling,
commensurate with the cost of regulation, inspection and licensing
before any person may engage in such business or occupation, or
practice such profession or calling.
Section 148. Fees for Sealing and Licensing of Weights and
Measures. -
(a) The municipality may levy fees for the sealing and licensing of
weights and measures at such reasonable rates as shall be
prescribed by the sangguniang bayan.
(b) The sangguniang bayan shall prescribe the necessary
regulations for the use of such weights and measures, subject to
such guidelines as shall be prescribed by the Department of Science
and Technology. The sanggunian concerned shall, by appropriate
ordinance, penalize fraudulent practices and unlawful possession or
use of instruments of weights and measures and prescribe the
criminal penalty therefor in accordance with the provisions of this
Code. Provided, however, That the sanggunian concerned may
authorize the municipal treasurer to settle an offense not involving
the commission of fraud before a case therefor is filed in court, upon
payment of a compromise penalty of not less than Two hundred
pesos (P200.00).
Section 149. Fishery Rentals, Fees and Charges. -
(a) Municipalities shall have the exclusive authority to grant fishery
privileges in the municipal waters and impose rentals, fees or
charges therefor in accordance with the provisions of this Section.
(b) The sangguniang bayan may:
(1) Grant fishery privileges to erect fish corrals, oysters, mussels or
other aquatic beds or bangus fry areas, within a definite zone of the
municipal waters, as determined by it: Provided, however, That duly
registered organizations and cooperatives of marginal fishermen
shall have the preferential right to such fishery privileges: Provided,
further, That the sangguniang bayan may require a public bidding in
conformity with and pursuant to an ordinance for the grant of such
privileges: Provided, finally, That in the absence of such
organizations and cooperatives or their failure to exercise their
preferential right, other parties may participate in the public bidding
in conformity with the above cited procedure.
(2) Grant the privilege to gather, take or catch bangus fry, prawn fry
or kawag-kawag or fry of other species and fish from the municipal
waters by nets, traps or other fishing gears to marginal fishermen
free of any rental, fee, charge or any other imposition whatsoever.
(3) Issue licenses for the operation of fishing vessels of three (3)
tons or less for which purpose the sangguniang bayan shall
promulgate rules and regulations regarding the issuances of such
licenses to qualified applicants under existing laws.
Provided, however, That the sanggunian concerned shall, by
appropriate ordinance, penalize the use of explosives, noxious or
poisonous substances, electricity, muro-ami, and other deleterious
methods of fishing and prescribe a criminal penalty therefor in
accordance with the provisions of this Code: Provided, finally, That
the sanggunian concerned shall have the authority to prosecute any
violation of the provisions of applicable fishery laws.
Section 150. Situs of the Tax. -
(a) For purposes of collection of the taxes under Section 143 of this
Code, manufacturers, assemblers, repackers, brewers, distillers,
rectifiers and compounders of liquor, distilled spirits and wines,
millers, producers, exporters, wholesalers, distributors, dealers,
contractors, banks and other financial institutions, and other
businesses, maintaining or operating branch or sales outlet
elsewhere shall record the sale in the branch or sales outlet making
the sale or transaction, and the tax thereon shall accrue and shall
be paid to the municipality where such branch or sales outlet is
located. In cases where there is no such branch or sales outlet in
the city or municipality where the sale or transaction is made, the
sale shall be duly recorded in the principal office and the taxes due
shall accrue and shall be paid to such city or municipality.
(b) The following sales allocation shall apply to manufacturers,
assemblers, contractors, producers, and exporters with factories,
project offices, plants, and plantations in the pursuit of their
business:
(1) Thirty percent (30%) of all sales recorded in the principal office
shall be taxable by the city or municipality where the principal office
is located; and
(2) Seventy percent (70%) of all sales recorded in the principal office
shall be taxable by the city or municipality where the factory, project
office, plant, or plantation is located.
(c) In case of a plantation located at a place other than the place
where the factory is located, said seventy percent (70%) mentioned
in subparagraph (b) of subsection (2) above shall be divided as
follows:
(1) Sixty percent (60%) to the city or municipality where the factory
is located; and
2) Forty percent (40%) to the city or municipality where the plantation
is located.
(d) In cases where a manufacturer, assembler, producer, exporter
or contractor has two (2) or more factories, project offices, plants, or
plantations located in different localities, the seventy percent (70%)
sales allocation mentioned in subparagraph (b) of subsection (2)
above shall be prorated among the localities where the factories,
project offices, plants, and plantations are located in proportion to
their respective volumes of production during the period for which
the tax is due.
(e) The foregoing sales allocation shall be applied irrespective of
whether or not sales are made in the locality where the factory,
project office, plant, or plantation is located.
ARTICLE III
Cities
Section 151. Scope of Taxing Powers. - Except as otherwise
provided in this Code, the city, may levy the taxes, fees, and charges
which the province or municipality may impose: Provided, however,
That the taxes, fees and charges levied and collected by highly
urbanized and independent component cities shall accrue to them
and distributed in accordance with the provisions of this Code.
The rates of taxes that the city may levy may exceed the maximum
rates allowed for the province or municipality by not more than fifty
percent (50%) except the rates of professional and amusement
taxes.
ARTICLE IV
Barangays
Section 152. Scope of Taxing Powers. - The barangays may levy
taxes, fees, and charges, as provided in this Article, which shall
exclusively accrue to them:
(a) Taxes - On stores or retailers with fixed business establishments
with gross sales of receipts of the preceding calendar year of Fifty
thousand pesos (P50,000.00) or less, in the case of cities and Thirty
thousand pesos (P30,000.00) or less, in the case of municipalities,
at a rate not exceeding one percent (1%) on such gross sales or
receipts.
(b) Service Fees or Charges. - Barangays may collect reasonable
fees or charges for services rendered in connection with the
regulations or the use of barangay-owned properties or service
facilities such as palay, copra, or tobacco dryers.
(c) Barangay Clearance. - No city or municipality may issue any
license or permit for any business or activity unless a clearance is
first obtained from the barangay where such business or activity is
located or conducted. For such clearance, the sangguniang
barangay may impose a reasonable fee. The application for
clearance shall be acted upon within seven (7) working days from
the filing thereof. In the event that the clearance is not issued within
the said period, the city or municipality may issue the said license or
permit.
(d) Other fees and Charges. - The barangay may levy reasonable
fees and charges:
(1) On commercial breeding of fighting cocks, cockfights and
cockpits;
(2) On places of recreation which charge admission fees; and
(3) On billboards, signboards, neon signs, and outdoor
advertisements.
ARTICLE V
Common Revenue-Raising Powers
Section 153. Service Fees and Charges. - Local government units
may impose and collect such reasonable fees and charges for
services rendered.
Section 154. Public Utility Charges. - Local government units may
fix the rates for the operation of public utilities owned, operated and
maintained by them within their jurisdiction.
Section 155. Toll Fees or Charges. - The sanggunian concerned
may prescribe the terms and conditions and fix the rates for the
imposition of toll fees or charges for the use of any public road, pier,
or wharf, waterway, bridge, ferry or telecommunication system
funded and constructed by the local government unit concerned:
Provided, That no such toll fees or charges shall be collected from
officers and enlisted men of the Armed Forces of the Philippines and
members of the Philippine National Police on mission, post office
personnel delivering mail, physically-handicapped, and disabled
citizens who are sixty-five (65) years or older.
When public safety and welfare so requires, the sanggunian
concerned may discontinue the collection of the tolls, and thereafter
the said facility shall be free and open for public use.
ARTICLE VI
Community Tax
Section 156. Community Tax. - Cities or municipalities may levy a
community tax in accordance with the provisions of this Article.
Section 157. Individuals Liable to Community Tax. - Every inhabitant
of the Philippines eighteen (18) years of age or over who has been
regularly employed on a wage or salary basis for at least thirty (30)
consecutive working days during any calendar year, or who is
engaged in business or occupation, or who owns real property with
an aggregate assessed value of One thousand pesos (P1,000.00)
or more, or who is required by law to file an income tax return shall
pay an annual additional tax of Five pesos (P5.00) and an annual
additional tax of One peso (P1.00) for every One thousand pesos
(P1,000.00) of income regardless of whether from business,
exercise of profession or from property which in no case shall
exceed Five thousand pesos (P5,000.00).
In the case of husband and wife, the additional tax herein imposed
shall be based upon the total property owned by them and the total
gross receipts or earnings derived by them.
Section 158. Juridical Persons Liable to Community Tax. - Every
corporation no matter how created or organized, whether domestic
or resident foreign, engaged in or doing business in the Philippines
shall pay an annual community tax of Five hundred pesos (P500.00)
and an annual additional tax, which, in no case, shall exceed Ten
thousand pesos (P10,000.00) in accordance with the following
schedule:
(1) For every Five thousand pesos (P5,000.00) worth of real property
in the Philippines owned by it during the preceding year based on
the valuation used for the payment of real property tax under existing
laws, found in the assessment rolls of the city or municipality where
the real property is situated - Two pesos (P2.00); and
(2) For every Five thousand pesos (P5,000.00) of gross receipts or
earnings derived by it from its business in the Philippines during the
preceding year - Two pesos (P2.00).
The dividends received by a corporation from another corporation
however shall, for the purpose of the additional tax, be considered
as part of the gross receipts or earnings of said corporation.
Section 159. Exemptions. - The following are exempt from the
community tax:
(1) Diplomatic and consular representatives; and
(2) Transient visitors when their stay in the Philippines does not
exceed three (3) months.
Section 160. Place of Payment. - The community tax shall be paid
in the place of residence of the individual, or in the place where the
principal office of the juridical entity is located.
Section 161. Time for Payment; Penalties for Delinquency. -
(a) The community tax shall accrue on the first (1st) day of January
of each year which shall be paid not later than the last day of
February of each year. If a person reaches the age of eighteen (18)
years or otherwise loses the benefit of exemption on or before the
last day of June, he shall be liable for the community tax on the day
he reaches such age or upon the day the exemption ends. However,
if a person reaches the age of eighteen (18) years or loses the
benefit of exemption on or before the last day of March, he shall
have twenty (20) days to pay the community tax without becoming
delinquent.
Persons who come to reside in the Philippines or reach the age of
eighteen (18) years on or after the first (1st) day of July of any year,
or who cease to belong to an exempt class or after the same date,
shall not be subject to the community tax for that year.
(b) Corporations established and organized on or before the last day
of June shall be liable for the community tax for that year. But
corporations established and organized on or before the last day of
March shall have twenty (20) days within which to pay the
community tax without becoming delinquent. Corporations
established and organized on or after the first day of July shall not
be subject to the community tax for that year.
If the tax is not paid within the time prescribed above, there shall be
added to the unpaid amount an interest of twenty-four percent (24%)
per annum from the due date until it is paid.
Section 162. Community Tax Certificate. - A community tax
certificate shall be issued to every person or corporation upon
payment of the community tax. A community tax certificate may also
be issued to any person or corporation not subject to the community
tax upon payment of One peso (P1.00).
Section 163. Presentation of Community Tax Certificate On Certain
Occasions. -
(a) When an individual subject to the community tax acknowledges
any document before a notary public, takes the oath of office upon
election or appointment to any position in the government service;
receives any license, certificate. or permit from any public authority;
pays any tax or free; receives any money from any public fund;
transacts other official business; or receives any salary or wage from
any person or corporation with whom such transaction is made or
business done or from whom any salary or wage is received to
require such individual to exhibit the community tax certificate.
The presentation of community tax certificate shall not be required
in connection with the registration of a voter.
(b) When, through its authorized officers, any corporation subject to
the community tax receives any license, certificate, or permit from
any public authority, pays any tax or fee, receives money from public
funds, or transacts other official business, it shall be the duty of the
public official with whom such transaction is made or business done,
to require such corporation to exhibit the community tax certificate.
(c) The community tax certificate required in the two preceding
paragraphs shall be the one issued for the current year, except for
the period from January until the fifteenth (15th) of April each year,
in which case, the certificate issued for the preceding year shall
suffice.
Section 164. Printing of Community Tax Certificates and Distribution
of Proceeds. -
(a) The Bureau of Internal Revenue shall cause the printing of
community tax certificates and distribute the same to the cities and
municipalities through the city and municipal treasurers in
accordance with prescribed regulations.
The proceeds of the tax shall accrue to the general funds of the
cities, municipalities and barangays except a portion thereof which
shall accrue to the general fund of the national government to cover
the actual cost of printing and distribution of the forms and other
related expenses. The city or municipal treasurer concerned shall
remit to the national treasurer the said share of the national
government in the proceeds of the tax within ten (10) days after the
end of each quarter.
(b) The city or municipal treasurer shall deputize the barangay
treasurer to collect the community tax in their respective
jurisdictions: Provided, however, That said barangay treasurer shall
be bonded in accordance with existing laws.
(c) The proceeds of the community tax actually and directly collected
by the city or municipal treasurer shall accrue entirely to the general
fund of the city or municipality concerned. However, proceeds of the
community tax collected through the barangay treasurers shall be
apportioned as follows:
(1) Fifty percent (50%) shall accrue to the general fund of the city or
municipality concerned; and
(2) Fifty percent (50%) shall accrue to the barangay where the tax is
collected.
CHAPTER III
Collection of Taxes
Section 165. Tax Period and Manner of Payment. - Unless otherwise
provided in this Code, the tax period of all local taxes, fees and
charges shall be the calendar year. Such taxes, fees and charges
may be paid in quarterly installments.
Section 166. Accrual of Tax. - Unless otherwise provided in this
Code, all local taxes, fees, and charges shall accrue on the first (1st)
day of January of each year. However, new taxes, fees or charges,
or changes in the rates thereof, shall accrue on the first (1st) day of
the quarter next following the effectivity of the ordinance imposing
such new levies or rates.
Section 167. Time of Payment. - Unless otherwise provided in this
Code, all local taxes, fees, and charges shall be paid within the first
twenty (20) days of January or of each subsequent quarter, as the
case may be. The sanggunian concerned may, for a justifiable
reason or cause, extend the time for payment of such taxes, fees, or
charges without surcharges or penalties, but only for a period not
exceeding six (6) months.
Section 168. Surcharges and Penalties on Unpaid Taxes, Fees, or
Charges. - The sanggunian may impose a surcharge not exceeding
twenty-five (25%) of the amount of taxes, fees or charges not paid
on time and an interest at the rate not exceeding two percent (2%)
per month of the unpaid taxes, fees or charges including surcharges,
until such amount is fully paid but in no case shall the total thirty-six
(36%) months.
Section 169. Interests on Other Unpaid Revenues. - Where the
amount of any other revenue due a local government unit, except
voluntary contributions or donations, is not paid on the date fixed in
the ordinance, or in the contract, expressed or implied, or upon the
occurrence of the event which has given rise to its collection, there
shall be collected as part of that amount an interest thereon at the
rate not exceeding two percent (2%) per month from the date it is
due until it is paid, but in no case shall the total interest on the unpaid
amount or a portion thereof exceed thirty-six (36) months.
Section 170. Collection of Local Revenue by Treasurer. - All local
taxes, fees, and charges shall be collected by the provincial, city,
municipal, or barangay treasurer, or their duly authorized deputies.
The provincial, city or municipal treasurer may designate the
barangay treasurer as his deputy to collect local taxes, fees, or
charges. In case a bond is required for the purpose, the provincial,
city or municipal government shall pay the premiums thereon in
addition to the premiums of bond that may be required under this
Code.
Section 171. Examination of Books of Accounts and Pertinent
Records of Businessmen by Local Treasurer. - The provincial, city,
municipal or barangay treasurer may, by himself or through any of
his deputies duly authorized in writing, examine the books, accounts,
and other pertinent records of any person, partnership, corporation,
or association subject to local taxes, fees and charges in order to
ascertain. assess, and collect the correct amount of the tax, fee, or
charge. Such examination shall be made during regular business
hours, only once for every tax period, and shall be certified to by the
examining official. Such certificate shall be made of record in the
books of accounts of the taxpayer examined.
In case the examination herein authorized is made by a duly
authorized deputy of the local treasurer, the written authority of the
deputy concerned shall specifically state the name, address, and
business of the taxpayer whose books, accounts, and pertinent
records are to be examined, the date and place of such examination
and the procedure to be followed in conducting the same.
For this purpose, the records of the revenue district office of the
Bureau of Internal Revenue shall be made available to the local
treasurer, his deputy or duly authorized representative.
CHAPTER IV
Civil Remedies for Collection of Revenues
Section 172. Application of Chapter. - The provisions of this Chapter
and the remedies provided hereon may be availed of for the
collection of any delinquent local tax, fee, charge, or other revenue.
Section 173. Local Government's Lien. - Local taxes, fees, charges
and other revenues constitute a lien, superior to all liens, charges or
encumbrances in favor of any person, enforceable by appropriate
administrative or judicial action, not only upon any property or rights
therein which may be subject to the lien but also upon property used
in business, occupation, practice of profession or calling, or exercise
of privilege with respect to which the lien is imposed. The lien may
only be extinguished upon full payment of the delinquent local taxes
fees and charges including related surcharges and interest.
Section 174. Civil Remedies. - The civil remedies for the collection
of local taxes, fees, or charges, and related surcharges and interest
resulting from delinquency shall be:
(a) By administrative action thru distraint of goods, chattels, or
effects, and other personal property of whatever character, including
stocks and other securities, debts, credits, bank accounts, and
interest in and rights to personal property, and by levy upon real
property and interest in or rights to real property;
(b) By judicial action.
Either of these remedies or all may be pursued concurrently or
simultaneously at the discretion of the local government unit
concerned.
Section 175. Distraint of Personal Property. - The remedy by
distraint shall proceed as follows:
(a) Seizure - Upon failure of the person owing any local tax, fee, or
charge to pay the same at the time required, the local treasurer or
his deputy may, upon written notice, seize or confiscate any
personal property belonging to that person or any personal property
subject to the lien in sufficient quantity to satisfy the tax, fee, or
charge in question, together with any increment thereto incident to
delinquency and the expenses of seizure. In such case, the local
treasurer or his deputy shall issue a duly authenticated certificate
based upon the records of his office showing the fact of delinquency
and the amounts of the tax, fee, or charge and penalty due. Such
certificate shall serve as sufficient warrant for the distraint of
personal property aforementioned, subject to the taxpayer's right to
claim exemption under the provisions of existing laws. Distrained
personal property shall be sold at public auction in the manner
hereon provided for.
(b) Accounting of distrained goods. - The officer executing the
distraint shall make or cause to be made an account of the goods,
chattels or effects distrained, a copy of which signed by himself shall
be left either with the owner or person from whose possession the
goods, chattels or effects are taken, or at the dwelling or place or
business of that person and with someone of suitable age and
discretion, to which list shall be added a statement of the sum
demanded and a note of the time and place of sale.
(c) Publication - The officer shall forthwith cause a notification to be
exhibited in not less than three (3) public and conspicuous places in
the territory of the local government unit where the distraint is made,
specifying the time and place of sale, and the articles distrained. The
time of sale shall not be less than twenty (20) days after the notice
to the owner or possessor of the property as above specified and
the publication or posting of the notice. One place for the posting of
the notice shall be at the office of the chief executive of the local
government unit in which the property is distrained.
(d) Release of distrained property upon payment prior to sale - If at
any time prior to the consummation of the sale, all the proper
charges are paid to the officer conducting the sale, the goods or
effects distrained shall be restored to the owner.
(e) Procedure of sale - At the time and place fixed in the notice, the
officer conducting the sale shall sell the goods or effects so
distrained at public auction to the highest bidder for cash. Within five
(5) days after the sale, the local treasurer shall make a report of the
proceedings in writing to the local chief executive concerned.
Should the property distrained be not disposed of within one
hundred and twenty (120) days from the date of distraint, the same
shall be considered as sold to the local government unit concerned
for the amount of the assessment made thereon by the Committee
on Appraisal and to the extent of the same amount, the tax
delinquencies shall be cancelled.
Said Committee on Appraisal shall be composed of the city or
municipal treasurer as chairman, with a representative of the
Commission on Audit and the city or municipal assessor as
members.
(f) Disposition of proceeds - The proceeds of the sale shall be
applied to satisfy the tax, including the surcharges, interest, and
other penalties incident to delinquency, and the expenses of the
distraint and sale. The balance over and above what is required to
pay the entire claim shall be returned to the owner of the property
sold. The expenses chargeable upon the seizure and sale shall
embrace only the actual expenses of seizure and preservation of the
property pending the sale, and no charge shall be imposed for the
services of the local officer or his deputy. Where the proceeds of the
sale are insufficient to satisfy the claim, other property may, in like
manner, be distrained until the full amount due, including all
expenses, is collected.
Section 176. Levy on Real Property. - After the expiration of the time
required to pay the delinquent tax, fee, or charge, real property may
be levied on before, simultaneously, or after the distraint of personal
property belonging to the delinquent taxpayer. To this end, the
provincial, city or municipal treasurer, as the case may be, shall
prepare a duly authenticated certificate showing the name of the
taxpayer and the amount of the tax, fee, or charge, and penalty due
from him. Said certificate shall operate with the force of a legal
execution throughout the Philippines. Levy shall be effected by
writing upon said certificate the description of the property upon
which levy is made. At the same time, written notice of the levy shall
be mailed to or served upon the assessor and the Register of Deeds
of the province or city where the property is located who shall
annotate the levy on the tax declaration and certificate of title of the
property, respectively, and the delinquent taxpayer or, if he be
absent from the Philippines, to his agent or the manager of the
business in respect to which the liability arose, or if there be none,
to the occupant of the property in question.
In case the levy on real property is not issued before or
simultaneously with the warrant of distraint on personal property,
and the personal property of the taxpayer is not sufficient to satisfy
his delinquency, the provincial, city or municipal treasurer, as the
case may be, shall within thirty (30) days after execution of the
distraint, proceed with the levy on the taxpayer's real property.
A report on any levy shall, within ten (10) days after receipt of the
warrant, be submitted by the levying officer to the sanggunian
concerned.
Section 177. Penalty for Failure to Issue and Execute Warrant. -
Without prejudice to criminal prosecution under the Revised Penal
Code and other applicable laws, any local treasurer who fails to
issue or execute the warrant of distraint or levy after the expiration
of the time prescribed, or who is found guilty of abusing the exercise
thereof by competent authority shall be automatically dismissed from
the service after due notice and hearing.
Section 178. Advertisement and Sale. - Within thirty (30) days after
the levy, the local treasurer shall proceed to publicly advertise for
sale or auction the property or a usable portion thereof as may be
necessary to satisfy the claim and cost of sale; and such
advertisement shall cover a period of at least thirty (30) days. It shall
be effected by posting a notice at the main entrance of the municipal
building or city hall, and in a public and conspicuous place in the
barangay where the real property is located, and by publication once
a week for three (3) weeks in a newspaper of general circulation in
the province, city or municipality where the property is located. The
advertisement shall contain the amount of taxes, fees or charges,
and penalties due thereon, and the time and place of sale, the name
of the taxpayer against whom the taxes, fees, or charges are levied,
and a short description of the property to be sold. At any time before
the date fixed for the sale, the taxpayer may stay they proceedings
by paying the taxes, fees, charges, penalties and interests. If he fails
to do so, the sale shall proceed and shall be held either at the main
entrance of the provincial, city or municipal building, or on the
property to be sold, or at any other place as determined by the local
treasurer conducting the sale and specified in the notice of sale.
Within thirty (30) days after the sale, the local treasurer or his deputy
shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. After consultation with the
sanggunian, the local treasurer shall make and deliver to the
purchaser a certificate of sale, showing the proceeding of the sale,
describing the property sold, stating the name of the purchaser and
setting out the exact amount of all taxes, fees, charges, and related
surcharges, interests, or penalties: Provided, however, That any
excess in the proceeds of the sale over the claim and cost of sales
shall be turned over to the owner of the property.
The local treasurer may, by ordinance duly approved, advance an
amount sufficient to defray the costs of collection by means of the
remedies provided for in this Title, including the preservation or
transportation in case of personal property, and the advertisement
and subsequent sale, in cases of personal and real property
including improvements thereon.
Section 179. Redemption of Property Sold. - Within one (1) year
from the date of sale, the delinquent taxpayer or his representative
shall have the right to redeem the property upon payment to the local
treasurer of the total amount of taxes, fees, or charges, and related
surcharges, interests or penalties from the date of delinquency to
the date of sale, plus interest of not more than two percent (2%) per
month on the purchase price from the date of purchase to the date
of redemption. Such payment shall invalidate the certificate of sale
issued to the purchaser and the owner shall be entitled to a
certificate of redemption from the provincial, city or municipal
treasurer or his deputy.
The provincial, city or municipal treasurer or his deputy, upon
surrender by the purchaser of the certificate of sale previously
issued to him, shall forthwith return to the latter the entire purchase
price paid by him plus the interest of not more than two percent (2%)
per month herein provided for, the portion of the cost of sale and
other legitimate expenses incurred by him, and said property
thereafter shall be free from the lien of such taxes, fees, or charges,
related surcharges, interests, and penalties.
The owner shall not, however, be deprived of the possession of said
property and shall be entitled to the rentals and other income thereof
until the expiration of the time allowed for its redemption.
Section 180. Final Deed to Purchaser. - In case the taxpayer fails to
redeem the property as provided herein, the local treasurer shall
execute a deed conveying to the purchaser so much of the property
as has been sold, free from liens of any taxes, fees, charges, related
surcharges, interests, and penalties. The deed shall succinctly recite
all the proceedings upon which the validity of the sale depends.
Section 181. Purchase of Property By the Local Government Units
for Want of Bidder. - In case there is no bidder for the real property
advertised for sale as provided herein, or if the highest bid is for an
amount insufficient to pay the taxes, fees, or charges, related
surcharges, interests, penalties and costs, the local treasurer
conducting the sale shall purchase the property in behalf of the local
government unit concerned to satisfy the claim and within two (2)
days thereafter shall make a report of his proceedings which shall
be reflected upon the records of his office. It shall be the duty of the
Registrar of Deeds concerned upon registration with his office of any
such declaration of forfeiture to transfer the title of the forfeited
property to the local government unit concerned without the
necessity of an order from a competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or
any of his representative, may redeem the property by paying to the
local treasurer the full amount of the taxes, fees, charges, and
related surcharges, interests, or penalties, and the costs of sale. If
the property is not redeemed as provided herein, the ownership
thereof shall be fully vested on the local government unit concerned.
Section 182. Resale of Real Estate Taken for Taxes, Fees, or
Charges. - The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell
and dispose of the real property acquired under the preceding
section at public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit concerned.
Section 183. Collection of Delinquent Taxes, Fees, Charges or other
Revenues through Judicial Action. - The local government unit
concerned may enforce the collection of delinquent taxes, fees,
charges or other revenues by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local treasurer within
the period prescribed in Section 194 of this Code.
Section 184. Further Distraint or Levy. - The remedies by distraint
and levy may be repeated if necessary until the full amount due,
including all expenses, is collected.
Section 185. Personal Property Exempt from Distraint or Levy. - The
following property shall be exempt from distraint and the levy,
attachment or execution thereof for delinquency in the payment of
any local tax, fee or charge, including the related surcharge and
interest:
(a) Tools and implements necessarily used by the delinquent
taxpayer in his trade or employment;
(b) One (1) horse, cow, carabao, or other beast of burden, such as
the delinquent taxpayer may select, and necessarily used by him in
his ordinary occupation;
(c) His necessary clothing, and that of all his family;
(d) Household furniture and utensils necessary for housekeeping
and used for that purpose by the delinquent taxpayer, such as he
may select, of a value not exceeding Ten thousand pesos
(P10,000.00);
(e) Provisions, including crops, actually provided for individual or
family use sufficient for four (4) months;
(f) The professional libraries of doctors, engineers, lawyers and
judges;
(g) One fishing boat and net, not exceeding the total value of Ten
thousand pesos (P10,000.00), by the lawful use of which a
fisherman earns his livelihood; and
(h) Any material or article forming part of a house or improvement of
any real property.
CHAPTER V
Miscellaneous Provisions
Section 186. Power To Levy Other Taxes, Fees or Charges. - Local
government units may exercise the power to levy taxes, fees or
charges on any base or subject not otherwise specifically
enumerated herein or taxed under the provisions of the National
Internal Revenue Code, as amended, or other applicable laws:
Provided, That the taxes, fees, or charges shall not be unjust,
excessive, oppressive, confiscatory or contrary to declared national
policy: Provided, further, That the ordinance levying such taxes, fees
or charges shall not be enacted without any prior public hearing
conducted for the purpose.
Section 187. Procedure for Approval and Effectivity of Tax,
Ordinances and Revenue Measures; Mandatory Public Hearings. -
The procedure for approval of local tax ordinances and revenue
measures shall be in accordance with the provisions of this Code:
Provided, That public hearings shall be conducted for the purpose
prior to the enactment thereof: Provided, further, That any question
on the constitutionality or legality of tax ordinances or revenue
measures may be raised on appeal within thirty (30) days from the
effectivity thereof to the Secretary of Justice who shall render a
decision within sixty (60) days from the date of receipt of the appeal:
Provided, however, That such appeal shall not have the effect of
suspending the effectivity of the ordinance and the accrual and
payment of the tax, fee, or charge levied therein: Provided, finally,
That within thirty (30) days after receipt of the decision or the lapse
of the sixty-day period without the Secretary of Justice acting upon
the appeal, the aggrieved party may file appropriate proceedings
with a court of competent jurisdiction.
Section 188. Publication of Tax Ordinances and Revenue Measures.
- Within ten (10) days after their approval, certified true copies of all
provincial, city, and municipal tax ordinances or revenue measures
shall be published in full for three (3) consecutive days in a
newspaper of local circulation: Provided, however, That in
provinces, cities and municipalities where there are no newspapers
of local circulation, the same may be posted in at least two (2)
conspicuous and publicly accessible places.
Section 189. Furnishing of Copies of Tax Ordinances and Revenue
Measures. - Copies of all provincial, city, and municipal and
barangay tax ordinances and revenue measures shall be furnished
the respective local treasurers for public dissemination.
Section 190. Attempt to Enforce Void or Suspended Tax Ordinances
and revenue measures. - The enforcement of any tax ordinance or
revenue measure after due notice of the disapproval or suspension
thereof shall be sufficient ground for administrative disciplinary
action against the local officials and employees responsible therefor.
Section 191. Authority of Local Government Units to Adjust Rates of
Tax Ordinances. - Local government units shall have the authority
to adjust the tax rates as prescribed herein not oftener than once
every five (5) years, but in no case shall such adjustment exceed ten
percent (10%) of the rates fixed under this Code.
Section 192. Authority to Grant Tax Exemption Privileges. - Local
government units may, through ordinances duly approved, grant tax
exemptions, incentives or reliefs under such terms and conditions
as they may deem necessary.
Section 193. Withdrawal of Tax Exemption Privileges. - Unless
otherwise provided in this Code, tax exemptions or incentives
granted to, or presently enjoyed by all persons, whether natural or
juridical, including government-owned or controlled corporations,
except local water districts, cooperatives duly registered under R.A.
No. 6938, non-stock and non-profit hospitals and educational
institutions, are hereby withdrawn upon the effectivity of this Code.
CHAPTER VI
Taxpayer's Remedies
Section 194. Periods of Assessment and Collection. -
(a) Local taxes, fees, or charges shall be assessed within five (5)
years from the date they became due. No action for the collection of
such taxes, fees, or charges, whether administrative or judicial, shall
be instituted after the expiration of such period: Provided, That.
taxes, fees or charges which have accrued before the effectivity of
this Code may be assessed within a period of three (3) years from
the date they became due.
(b) In case of fraud or intent to evade the payment of taxes, fees, or
charges, the same may be assessed within ten (10) years from
discovery of the fraud or intent to evade payment.
(c) Local taxes, fees, or charges may be collected within five (5)
years from the date of assessment by administrative or judicial
action. No such action shall be instituted after the expiration of said
period: Provided, however, That, taxes, fees or charges assessed
before the effectivity of this Code may be collected within a period of
three (3) years from the date of assessment.
(d) The running of the periods of prescription provided in the
preceding paragraphs shall be suspended for the time during which:
(1) The treasurer is legally prevented from making the assessment
of collection;
(2) The taxpayer requests for a reinvestigation and executes a
waiver in writing before expiration of the period within which to
assess or collect; and
(3) The taxpayer is out of the country or otherwise cannot be located.
Section 195. Protest of Assessment. - When the local treasurer or
his duly authorized representative finds that correct taxes, fees, or
charges have not been paid, he shall issue a notice of assessment
stating the nature of the tax, fee, or charge, the amount of deficiency,
the surcharges, interests and penalties. Within sixty (60) days from
the receipt of the notice of assessment, the taxpayer may file a
written protest with the local treasurer contesting the assessment;
otherwise, the assessment shall become final and executory. The
local treasurer shall decide the protest within sixty (60) days from
the time of its filing. If the local treasurer finds the protest to be wholly
or partly meritorious, he shall issue a notice cancelling wholly or
partially the assessment. However, if the local treasurer finds the
assessment to be wholly or partly correct, he shall deny the protest
wholly or partly with notice to the taxpayer. The taxpayer shall have
thirty (30) days from the receipt of the denial of the protest or from
the lapse of the sixty (60) day period prescribed herein within which
to appeal with the court of competent jurisdiction otherwise the
assessment becomes conclusive and unappealable.
Section 196. Claim for Refund of Tax Credit. - No case or proceeding
shall be maintained in any court for the recovery of any tax, fee, or
charge erroneously or illegally collected until a written claim for
refund or credit has been filed with the local treasurer. No case or
proceeding shall be entertained in any court after the expiration of
two (2) years from the date of the payment of such tax, fee, or
charge, or from the date the taxpayer is entitled to a refund or credit.
TITLE II
REAL PROPERTY TAXATION
CHAPTER I
General Provisions
Section 197. Scope. - This Title shall govern the administration,
appraisal, assessment, levy and collection of real property tax.
Section 198. Fundamental Principles. - The appraisal, assessment,
levy and collection of real property tax shall be guided by the
following fundamental principles:
(a) Real property shall be appraised at its current and fair market
value;
(b) Real property shall be classified for assessment purposes on the
basis of its actual use;
(c) Real property shall be assessed on the basis of a uniform
classification within each local government unit;
(d) The appraisal, assessment, levy and collection of real property
tax shall not be let to any private person; and
(e) The appraisal and assessment of real property shall be equitable.
Section 199. Definitions. - When used in this Title:
(a) "Acquisition Cost" for newly-acquired machinery not yet
depreciated and appraised within the year of its purchase, refers to
the actual cost of the machinery to its present owner, plus the cost
of transportation, handling, and installation at the present site;
(b) "Actual Use" refers to the purpose for which the property is
principally or predominantly utilized by the person in possession
thereof;
(c) "Ad Valorem Tax" is a levy on real property determined on the
basis of a fixed proportion of the value of the property;
(d) "Agricultural Land" is land devoted principally to the planting of
trees, raising of crops, livestock and poultry, dairying, salt making,
inland fishing and similar aquacultural activities, and other
agricultural activities, and is not classified as mineral, timber,
residential, commercial or industrial land;
(e) "Appraisal" is the act or process of determining the value of
property as of a specified date for a specific purpose;
(f) "Assessment" is the act or process of determining the value of a
property, or proportion thereof subject to tax, including the discovery,
listing, classification, and appraisal of properties;
(g) "Assessment Level" is the percentage applied to the fair market
value to determine the taxable value of the property;
(h) "Assessed Value" is the fair market value of the real property
multiplied by the assessment level. It is synonymous to taxable
value;
(i) "Commercial Land" is land devoted principally for the object of
profit and is not classified as agricultural, industrial, mineral, timber,
or residential land;
(j) "Depreciated Value" is the value remaining after deducting
depreciation from the acquisition cost;
(k) "Economic Life" is the estimated period over which it is
anticipated that a machinery or equipment may be profitably utilized;
(l) "Fair Market Value" is the price at which a property may be sold
by a seller who is not compelled to sell and bought by a buyer who
is not compelled to buy;
(m) "Improvement" is a valuable addition made to a property or an
amelioration in its condition, amounting to more than a mere repair
or replacement of parts involving capital expenditures and labor,
which is intended to enhance its value, beauty or utility or to adapt it
for new or further purposes;
(n) "Industrial Land" is land devoted principally to industrial activity
as capital investment and is not classified as agricultural,
commercial, timber, mineral or residential land;
(o) "Machinery" embraces machines, equipment, mechanical
contrivances, instruments, appliances or apparatus which may or
may not be attached, permanently or temporarily, to the real
property. It includes the physical facilities for production, the
installations and appurtenant service facilities, those which are
mobile, self-powered or self-propelled, and those not permanently
attached to the real property which are actually, directly, and
exclusively used to meet the needs of the particular industry,
business or activity and which by their very nature and purpose are
designed for, or necessary to its manufacturing, mining, logging,
commercial, industrial or agricultural purposes;
(p) "Mineral Lands" are lands in which minerals, metallic or non-
metallic, exist in sufficient quantity or grade to justify the necessary
expenditures to extract and utilize such materials;
(q) "Reassessment" is the assigning of new assessed values to
property, particularly real estate, as the result of a general, partial,
or individual reappraisal of the property;
(r) "Remaining Economic Life" is the period of time expressed in
years from the date of appraisal to the date when the machinery
becomes valueless;
(s) "Remaining Value" is the value corresponding to the remaining
useful life of the machinery;
(t) "Replacement or Reproduction Cost" is the cost that would be
incurred on the basis of current prices, in acquiring an equally
desirable substitute property, or the cost of reproducing a new
replica of the property on the basis of current prices with the same
or closely similar material; and
(u) "Residential Land" is land principally devoted to habitation.
Section 200. Administration of the Real Property Tax. - The
provinces and cities, including the municipalities within the
Metropolitan Manila Area, shall be primarily responsible for the
proper, efficient and effective administration of the real property tax.
CHAPTER II
Appraisal and Assessment of Real Property
Section 201. Appraisal of Real Property. - All real property, whether
taxable or exempt, shall be appraised at the current and fair market
value prevailing in the locality where the property is situated. The
Department of Finance shall promulgate the necessary rules and
regulations for the classification, appraisal, and assessment of real
property pursuant to the provisions of this Code.
Section 202. Declaration of real Property by the Owner or
Administrator. - It shall be the duty of all persons, natural or juridical,
owning or administering real property, including the improvements
therein, within a city or municipality, or their duly authorized
representative, to prepare, or cause to be prepared, and file with the
provincial, city or municipal assessor, a sworn statement declaring
the true value of their property, whether previously declared or
undeclared, taxable or exempt, which shall be the current and fair
market value of the property, as determined by the declarant. Such
declaration shall contain a description of the property sufficient in
detail to enable the assessor or his deputy to identify the same for
assessment purposes. The sworn declaration of real property herein
referred to shall be filed with the assessor concerned once every
three (3) years during the period from January first (1st) to June
thirtieth (30th) commencing with the calendar year 1992.
Section 203. Duty of Person Acquiring Real Property or Making
Improvement Thereon. - It shall also be the duty of any person, or
his authorized representative, acquiring at any time real property in
any municipality or city or making any improvement on real property,
to prepare, or cause to be prepared, and file with the provincial, city
or municipal assessor, a sworn statement declaring the true value of
subject property, within sixty (60) days after the acquisition of such
property or upon completion or occupancy of the improvement,
whichever comes earlier.
Section 204. Declaration of Real Property by the Assessor. - When
any person, natural or juridical, by whom real property is required to
be declared under Section 202 hereof, refuses or fails for any reason
to make such declaration within the time prescribed, the provincial,
city or municipal assessor shall himself declare the property in the
name of the defaulting owner, if known, or against an unknown
owner, as the case may be, and shall assess the property for
taxation in accordance with the provision of this Title. No oath shall
be required of a declaration thus made by the provincial, city or
municipal assessor.
Section 205. Listing of Real Property in the Assessment Rolls. -
(a) In every province and city, including the municipalities within the
Metropolitan Manila Area, there shall be prepared and maintained
by the provincial, city or municipal assessor an assessment roll
wherein shall be listed all real property, whether taxable or exempt,
located within the territorial jurisdiction of the local government unit
concerned. Real property shall be listed, valued and assessed in the
name of the owner or administrator, or anyone having legal interest
in the property.
(b) The undivided real property of a deceased person may be listed,
valued and assessed in the name of the estate or of the heirs and
devisees without designating them individually; and undivided real
property other than that owned by a deceased may be listed, valued
and assessed in the name of one or more co-owners: Provided,
however, That such heir, devisee, or co-owner shall be liable
severally and proportionately for all obligations imposed by this Title
and the payment of the real property tax with respect to the
undivided property.
(c) The real property of a corporation, partnership, or association
shall be listed, valued and assessed in the same manner as that of
an individual.
(d) Real property owned by the Republic of the Philippines, its
instrumentalities and political subdivisions, the beneficial use of
which has been granted, for consideration or otherwise, to a taxable
person, shall be listed, valued and assessed in the name of the
possessor, grantee or of the public entity if such property has been
acquired or held for resale or lease.
Section 206. Proof of Exemption of Real Property from Taxation. -
Every person by or for whom real property is declared, who shall
claim tax exemption for such property under this Title shall file with
the provincial, city or municipal assessor within thirty (30) days from
the date of the declaration of real property sufficient documentary
evidence in support of such claim including corporate charters, title
of ownership, articles of incorporation, by-laws, contracts, affidavits,
certifications and mortgage deeds, and similar documents.
If the required evidence is not submitted within the period herein
prescribed, the property shall be listed as taxable in the assessment
roll. However, if the property shall be proven to be tax exempt, the
same shall be dropped from the assessment roll.
Section 207. Real Property Identification System. - All declarations
of real property made under the provisions of this Title shall be kept
and filed under a uniform classification system to be established by
the provincial, city or municipal assessor.
Section 208. Notification of Transfer of Real Property Ownership. -
Any person who shall transfer real property ownership to another
shall notify the provincial, city or municipal assessor concerned
within sixty (60) days from the date of such transfer. The notification
shall include the mode of transfer, the description of the property
alienated, the name and address of the transferee.
Section 209. Duty of Registrar of Deeds to Appraise Assessor of
Real Property Listed in Registry. -
(a) To ascertain whether or not any real property entered in the
Registry of Property has escaped discovery and listing for the
purpose of taxation, the Registrar of Deeds shall prepare and submit
to the provincial, city or municipal assessor, within six (6) months
from the date of effectivity of this Code and every year thereafter, an
abstract of his registry, which shall include brief but sufficient
description of the real properties entered therein, their present
owners, and the dates of their most recent transfer or alienation
accompanied by copies of corresponding deeds of sale, donation,
or partition or other forms of alienation.
(b) It shall also be the duty of the Registrar of Deeds to require every
person who shall present for registration a document of transfer,
alienation, or encumbrance of real property to accompany the same
with a certificate to the effect that the real property subject of the
transfer, alienation, or encumbrance, as the case may be, has been
fully paid of all real property taxes due thereon. Failure to provide
such certificate shall be a valid cause for the Registrar of Deeds to
refuse the registration of the document.
Section 210. Duty of Official Issuing Building Permit or Certificate of
Registration of Machinery to Transmit Copy to Assessor. - Any
public official or employee who may now or hereafter be required by
law or regulation to issue to any person a permit for the construction,
addition, repair, or renovation of a building, or permanent
improvement on land, or a certificate of registration for any
machinery, including machines, mechanical contrivances, and
apparatus attached or affixed on land or to another real property,
shall transmit a copy of such permit or certificate within thirty (30)
days of its issuance, to the assessor of the province, city or Over Not Over Assessment Levels
municipality where the property is situated.
P175,000.00 0%
Section 211. Duty of Geodetic Engineers to Furnish Copy of Plans P175,000.00 300,000.00 10%
to Assessor. - It shall be the duty of all geodetic engineers, public or 300,000.00 500,000.00 20%
private, to furnish free of charge to the assessor of the province, city 500,000.00 750,000.00 25%
or municipality where the land is located with a white or blue print 750,000.00 1,000,000.00 30%
copy of each of all approved original or subdivision plans or maps of 1,000,000.00 2,000,000.00 35%
surveys executed by them within thirty (30) days from receipt of such 2,000,000.00 5,000,000.00 40%
plans from the Lands Management Bureau, the Land Registration 5,000,000.00 10,000,000.00 50%
Authority, or the Housing and Land Use Regulatory Board, as the 10,000,000.00
case may be. 60%
(2) Agricultural
Section 212. Preparation of Schedule of Fair Market Values. - Before Fair Market Value
any general revision of property assessment is made pursuant to the Over Not Over Assessment Levels
provisions of this Title, there shall be prepared a schedule of fair P300,000.00
market values by the provincial, city and municipal assessor of the 25%
municipalities within the Metropolitan Manila Area for the different P300,000.00 500,000.00 30%
classes of real property situated in their respective local government 500,000.00 750,000.00 35%
units for enactment by ordinance of the sanggunian concerned. The 750,000.00 1,000,000.00 40%
schedule of fair market values shall be published in a newspaper of 1,000,000.00 2,000,000.00 45%
general circulation in the province, city or municipality concerned or 2,000,000.00
in the absence thereof, shall be posted in the provincial capitol, city 50%
or municipal hall and in two other conspicuous public places therein. (3) Commercial / Industrial
Fair Market Value
Section 213. Authority of Assessor to Take Evidence. - For the Over Not Over Assessment Levels
purpose of obtaining information on which to base the market value P300,000.00
of any real property, the assessor of the province, city or municipality 30%
or his deputy may summon the owners of the properties to be P300,000.00 500,000.00 35%
affected or persons having legal interest therein and witnesses, 500,000.00 750,000.00 40%
administer oaths, and take deposition concerning the property, its 750,000.00 1,000,000.00 50%
ownership, amount, nature, and value. 1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
Section 214. Amendment of Schedule of Fair Market Values. - The 5,000,000.00 10,000,000.00 75%
provincial, city or municipal assessor may recommend to the 10,000,000.00
sanggunian concerned amendments to correct errors in valuation in 80%
the schedule of fair market values. The sanggunian concerned shall, (4) Timberland
by ordinance, act upon the recommendation within ninety (90) days Fair Market Value
from receipt thereof. Over Not Over Assessment Levels
P300,000.00 45%
Section 215. Classes of Real Property for Assessment Purposes. - P300,000.00 500,000.00 50%
For purposes of assessment, real property shall be classified as 500,000.00 750,000.00 55%
residential, agricultural, commercial, industrial, mineral, timberland 750,000.00 1,000,000.00 60%
or special. 5,000,000.00 2,000,000.00 65%
2,000,000.00 70%
The city or municipality within the Metropolitan Manila Area, through (c) On Machineries
their respective sanggunian, shall have the power to classify lands
as residential, agricultural, commercial, industrial, mineral, Class Assessment Levels
timberland, or special in accordance with their zoning ordinances. Agricultural 40%
Residential 50%
Section 216. Special Classes of Real Property. - All lands, buildings, Commercial 80%
and other improvements thereon actually, directly and exclusively Industrial 80%
used for hospitals, cultural, or scientific purposes, and those owned (d) On Special Classes: The assessment levels for all lands
and used by local water districts, and government-owned or buildings, machineries and other improvements;
controlled corporations rendering essential public services in the
supply and distribution of water and/or generation and transmission Actual Use Assessment Level
of electric power shall be classified as special. Cultural 15%
Scientific 15%
Section 217. Actual Use of Real Property as Basis for Assessment. Hospital 15%
- Real property shall be classified, valued and assessed on the basis Local water districts 10%
of its actual use regardless of where located, whoever owns it, and Government-owned or controlled corporations engaged in the
whoever uses it. supply and distribution of water and/or generation and transmission
of electric power 10%
Section 218. Assessment Levels. - The assessment levels to be Section 219. General Revision of Assessment and Property
applied to the fair market value of real property to determine its Classification. - The provincial, city or municipal assessor shall
assessed value shall be fixed by ordinances of the sangguniang undertake a general revision of real property assessments within two
panlalawigan, sangguniang panlungsod or sangguniang bayan of a (2) years after the effectivity of this Code and every three (3) years
municipality within the Metropolitan Manila Area, at the rates not thereafter.
exceeding the following:
Section 220. Valuation of Real Property. - In cases where (a) real
(a) On Lands: property is declared and listed for taxation purposes for the first time;
(b) there is an ongoing general revision of property classification and
CLASS ASSESSMENT LEVELS assessment; or (c) a request is made by the person in whose name
Residential 20% the property is declared, the provincial, city or municipal assessor or
Agricultural 40% his duly authorized deputy shall, in accordance with the provisions
Commercial 50% of this Chapter, make a classification, appraisal and assessment or
Industrial 50% taxpayer's valuation thereon: Provided, however, That the
Mineral 50% assessment of real property shall not be increased oftener than once
Timberland 20% every three (3) years except in case of new improvements
(b) On Buildings and Other Structures: substantially increasing the value of said property or of any change
in its actual use.

(1) Residential Section 221. Date of Effectivity of Assessment or Reassessment. -

Fair market Value All assessments or reassessments made after the first (1st) day of
January of any year shall take effect on the first (1st) day of January
of the succeeding year: Provided, however, That the reassessment
of real property due to its partial or total destruction, or to a major
change in its actual use, or to any great and sudden inflation or
deflation of real property values, or to the gross illegality of the
assessment when made or to any other abnormal cause, shall be
made within ninety (90) days from the date any such cause or
causes occurred, and shall take effect at the beginning of the quarter
next following the reassessment.
Section 222. Assessment of Property Subject to Back Taxes. - Real
property declared for the first time shall be assessed for taxes for
the period during which it would have been liable but in no case of
more than ten (10) years prior to the date of initial assessment:
Provided, however, That such taxes shall be computed on the basis
of the applicable schedule of values in force during the
corresponding period.
If such taxes are paid on or before the end of the quarter following
the date the notice of assessment was received by the owner or his
representative, no interest for delinquency shall be imposed thereon;
otherwise, such taxes shall be subject to an interest at the rate of
two percent (2%) per month or a fraction thereof from the date of the
receipt of the assessment until such taxes are fully paid.
Section 223. Notification of New or Revised Assessment. - When
real property is assessed for the first time or when an existing
assessment is increased or decreased, the provincial, city or
municipal assessor shall within thirty (30) days give written notice of
such new or revised assessment to the person in whose name the
property is declared. The notice may be delivered personally or by
registered mail or through the assistance of the punong barangay to
the last known address of the person to be served.
Section 224. Appraisal and Assessment of Machinery. -
(a) The fair market value of a brand-new machinery shall be the
acquisition cost. In all other cases, the fair market value shall be
determined by dividing the remaining economic life of the machinery
by its estimated economic life and multiplied by the replacement or
reproduction cost.
(b) If the machinery is imported, the acquisition cost includes freight,
insurance, bank and other charges, brokerage, arrastre and
handling, duties and taxes, plus charges at the present site. The cost
in foreign currency of imported machinery shall be converted to peso
cost on the basis of foreign currency exchange rates as fixed by the
Central Bank.
Section 225. Depreciation Allowance for Machinery. - For purposes
of assessment, a depreciation allowance shall be made for
machinery at a rate not exceeding five percent (5%) of its original
cost or its replacement or reproduction cost, as the case may be, for
each year of use: Provided, however, That the remaining value for
all kinds of machinery shall be fixed at not less than twenty percent
(20%) of such original, replacement, or reproduction cost for so long
as the machinery is useful and in operation.
CHAPTER III
Assessment Appeals
Section 226. Local Board of Assessment Appeals. - Any owner or
person having legal interest in the property who is not satisfied with
the action of the provincial, city or municipal assessor in the
assessment of his property may, within sixty (60) days from the date
of receipt of the written notice of assessment, appeal to the Board of
Assessment Appeals of the provincial or city by filing a petition under
oath in the form prescribed for the purpose, together with copies of
the tax declarations and such affidavits or documents submitted in
support of the appeal.
Section 227. Organization, Powers, Duties, and Functions of the
Local Board of Assessment Appeals. -
(a) The Board of Assessment Appeals of the province or city shall
be composed of the Registrar of Deeds, as Chairman, the provincial
or city prosecutor and the provincial, or city engineer as members,
who shall serve as such in an ex officio capacity without additional
compensation.
(b) The chairman of the Board shall have the power to designate any
employee of the province or city to serve as secretary to the Board
also without additional compensation.
(c) The chairman and members of the Board of Assessment Appeals
of the province or city shall assume their respective positions without
need of further appointment or special designations immediately
upon effectivity of this Code. They shall take oath or affirmation of
office in the prescribed form.
(d) In provinces and cities without a provincial or city engineer, the
district engineer shall serve as member of the Board. In the absence
of the Registrar of Deeds, or the provincial or city prosecutor, or the
provincial or city engineer, or the district engineer, the persons
performing their duties, whether in an acting capacity or as a duly
designated officer-in-charge, shall automatically become the
chairman or member, respectively, of the said Board, as the case
may be.
Section 228. Meetings and Expenses of the Local Board of
Assessment Appeals. -
(a) The Board of Assessment Appeals of the province or city shall
meet once a month and as often as may be necessary for the prompt
disposition of appealed cases. No member of the Board shall be
entitled to per diems or traveling expenses for his attendance in
Board meetings, except when conducting an ocular inspection in
connection with a case under appeal.
(b) All expenses of the Board shall be charged against the general
fund of the province or city, as the case may be. The sanggunian
concerned shall appropriate the necessary funds to enable the
Board in their respective localities to operate effectively.
Section 229. Action by the Local Board of Assessment Appeals. -
(a) The Board shall decide the appeal within one hundred twenty
(120) days from the date of receipt of such appeal. The Board, after
hearing, shall render its decision based on substantial evidence or
such relevant evidence on record as a reasonable mind might
accept as adequate to support the conclusion.
(b) In the exercise of its appellate jurisdiction, the Board shall have
the power to summon witnesses, administer oaths, conduct ocular
inspection, take depositions, and issue subpoena and subpoena
duces tecum. The proceedings of the Board shall be conducted
solely for the purpose of ascertaining the facts without necessarily
adhering to technical rules applicable in judicial proceedings.
(c) The secretary of the Board shall furnish the owner of the property
or the person having legal interest therein and the provincial or city
assessor with a copy of the decision of the Board. In case the
provincial or city assessor concurs in the revision or the assessment,
it shall be his duty to notify the owner of the property or the person
having legal interest therein of such fact using the form prescribed
for the purpose. The owner of the property or the person having legal
interest therein or the assessor who is not satisfied with the decision
of the Board, may, within thirty (30) days after receipt of the decision
of said Board, appeal to the Central Board of Assessment Appeals,
as herein provided. The decision of the Central Board shall be final
and executory.
Section 230. Central Board of Assessment Appeals. - The Central
Board of Assessment Appeals shall be composed of a chairman,
and two (2) members to be appointed by the President, who shall
serve for a term of seven (7) years, without reappointment. Of those
first appointed, the chairman shall hold office for seven (7) years,
one member for five (5) years, and the other member for three (3)
years. Appointment to any vacancy shall be only for the unexpired
portion of the term of the predecessor. In no case shall any member
be appointed or designated in a temporary or acting capacity. The
chairman and the members of the Board shall be Filipino citizens, at
least forty (40) years old at the time of their appointment, and
members of the Bar or Certified Public Accountants for at least ten
(10) years immediately preceding their appointment. The chairman
of the Board of Assessment Appeals shall have the salary grade
equivalent to the rank of Director III under the Salary Standardization
Law exclusive of allowances and other emoluments. The members
of the Board shall have the salary grade equivalent to the rank of
Director II under the Salary Standardization Law exclusive of
allowances and other emoluments. The Board shall have appellate
jurisdiction over all assessment cases decided by the Local Board
of Assessment Appeals.
There shall be Hearing Officers to be appointed by the Central Board
of Assessment Appeals pursuant to civil service laws, rules and
regulations, one each for Luzon, Visayas and Mindanao, who shall
hold office in Manila, Cebu City and Cagayan de Oro City,
respectively, and who shall serve for a term of six (6) years, without
reappointment until their successors have been appointed and
qualified. The Hearing Officers shall have the same qualifications as
that of the Judges of the Municipal Trial Courts.
The Central Board Assessment Appeals, in the performance of its
powers and duties, may establish and organize staffs, offices, units,
prescribe the titles, functions and duties of their members and adopt
its own rules and regulations.
Unless otherwise provided by law, the annual appropriations for the
Central Board of Assessment Appeals shall be included in the
budget of the Department of Finance in the corresponding General
Appropriations Act.
Section 231. Effect of Appeal on the Payment of Real Property Tax.
- Appeal on assessments of real property made under the provisions
of this Code shall, in no case, suspend the collection of the
corresponding realty taxes on the property involved as assessed by
the provincial or city assessor, without prejudice to subsequent
adjustment depending upon the final outcome of the appeal.
CHAPTER IV
Imposition of Real Property Tax
Section 232. Power to Levy Real Property Tax. - A province or city
or a municipality within the Metropolitan Manila Area my levy an
annual ad valorem tax on real property such as land, building,
machinery, and other improvement not hereinafter specifically
exempted.
Section 233. Rates of Levy. - A province or city or a municipality
within the Metropolitan Manila Area shall fix a uniform rate of basic
real property tax applicable to their respective localities as follows:
(a) In the case of a province, at the rate not exceeding one percent
(1%) of the assessed value of real property; and
(b) In the case of a city or a municipality within the Metropolitan
Manila Area, at the rate not exceeding two percent (2%) of the
assessed value of real property.
Section 234. Exemptions from Real Property Tax. - The following
are exempted from payment of the real property tax:
(a) Real property owned by the Republic of the Philippines or any of
its political subdivisions except when the beneficial use thereof has
been granted, for consideration or otherwise, to a taxable person;
(b) Charitable institutions, churches, parsonages or convents
appurtenant thereto, mosques, non-profit or religious cemeteries
and all lands, buildings, and improvements actually, directly, and
exclusively used for religious, charitable or educational purposes;
(c) All machineries and equipment that are actually, directly and
exclusively used by local water districts and government owned or
controlled corporations engaged in the supply and distribution of
water and/or generation and transmission of electric power;
(d) All real property owned by duly registered cooperatives as
provided for under R.A. No. 6938; and
(e) Machinery and equipment used for pollution control and
environmental protection.
Except as provided herein, any exemption from payment of real
property tax previously granted to, or presently enjoyed by, all
persons, whether natural or juridical, including all government-
owned or controlled corporations are hereby withdrawn upon the
effectivity of this Code.
CHAPTER V
Special Levies on Real Property
Section 235. Additional Levy on Real Property for the Special
Education Fund. - A province or city, or a municipality within the
Metropolitan Manila Area, may levy and collect an annual tax of one
percent (1%) on the assessed value of real property which shall be
in addition to the basic real property tax. The proceeds thereof shall
exclusively accrue to the Special Education Fund (SEF).
Section 236. Additional Ad Valorem Tax on Idle Lands. - A province
or city, or a municipality within the Metropolitan Manila Area, may
levy an annual tax on idle lands at the rate not exceeding five percent
(5%) of the assessed value of the property which shall be in addition
to the basic real property tax.
Section 237. Idle Lands, Coverage. - For purposes of real property
taxation, idle lands shall include the following:
(a) Agricultural lands, more than one (1) hectare in area, suitable for
cultivation, dairying, inland fishery, and other agricultural uses, one-
half (1/2) of which remain uncultivated or unimproved by the owner
of the property or person having legal interest therein. Agricultural
lands planted to permanent or perennial crops with at least fifty (50)
trees to a hectare shall not be considered idle lands. Lands actually
used for grazing purposes shall likewise not be considered idle
lands.
(b) Lands, other than agricultural, located in a city or municipality,
more than one thousand (1,000) square meters in area one-half
(1/2) of which remain unutilized or unimproved by the owner of the
property or person having legal interest therein.
Regardless of land area, this Section shall likewise apply to
residential lots in subdivisions duly approved by proper authorities,
the ownership of which has been transferred to individual owners,
who shall be liable for the additional tax: Provided, however, That
individual lots of such subdivisions, the ownership of which has not
been transferred to the buyer shall be considered as part of the
subdivision, and shall be subject to the additional tax payable by
subdivision owner or operator.
Section 238. Idle Lands Exempt from Tax. - A province or city or a
municipality within the Metropolitan Manila Area may exempt idle
lands from the additional levy by reason of force majeure, civil
disturbance, natural calamity or any cause or circumstance which
physically or legally prevents the owner of the property or person
having legal interest therein from improving, utilizing or cultivating
the same.
Section 239. Listing of Idle Lands by the Assessor. - The provincial,
city or municipal assessor shall make and keep an updated record
of all idle lands located within his area of jurisdiction. For purposes
of collection, the provincial, city or municipal assessor shall furnish
a copy thereof to the provincial or city treasurer who shall notify, on
the basis of such record, the owner of the property or person having
legal interest therein of the imposition of the additional tax.
Section 240. Special Levy by Local Government Units. - A province,
city or municipality may impose a special levy on the lands
comprised within its territorial jurisdiction specially benefited by
public works projects or improvements funded by the local
government unit concerned: Provided, however, That the special
levy shall not exceed sixty percent (60%) of the actual cost of such
projects and improvements, including the costs of acquiring land and
such other real property in connection therewith: Provided, further,
That the special levy shall not apply to lands exempt from basic real
property tax and the remainder of the land portions of which have
been donated to the local government unit concerned for the
construction of such projects or improvements.
Section 241. Ordinance Imposing a Special Levy. - A tax ordinance
imposing a special levy shall describe with reasonable accuracy the
nature, extent, and location of the public works projects or
improvements to be undertaken, state the estimated cost thereof,
specify the metes and bounds by monuments and lines and the
number of annual installments for the payment of the special levy
which in no case shall be less than five (5) nor more than ten (10)
years. The sanggunian concerned shall not be obliged, in the
apportionment and computation of the special levy, to establish a
uniform percentage of all lands subject to the payment of the tax for
the entire district, but it may fix different rates for different parts or
sections thereof, depending on whether such land is more or less
benefited by proposed work.
Section 242. Publication of Proposed Ordinance Imposing a Special
Levy. - Before the enactment of an ordinance imposing a special
levy, the sanggunian concerned shall conduct a public hearing
thereon; notify in writing the owners of the real property to be
affected or the persons having legal interest therein as to the date
and place thereof and afford the latter the opportunity to express
their positions or objections relative to the proposed ordinance.
Section 243. Fixing the Amount of Special Levy. - The special levy
authorized herein shall be apportioned, computed, and assessed
according to the assessed valuation of the lands affected as shown
by the books of the assessor concerned, or its current assessed
value as fixed by said assessor if the property does not appear of
record in his books. Upon the effectivity of the ordinance imposing
special levy, the assessor concerned shall forthwith proceed to
determine the annual amount of special levy assessed against each
parcel of land comprised within the area especially benefited and
shall send to each landowner a written notice thereof by mail,
personal service or publication in appropriate cases.
Section 244. Taxpayer's Remedies Against Special Levy. - Any
owner of real property affected by a special levy or any person
having a legal interest therein may, upon receipt of the written notice
of assessment of the special levy, avail of the remedies provided for
in Chapter 3, Title Two, Book II of this Code.
Section 245. Accrual of Special Levy. - The special levy shall accrue
on the first day of the quarter next following the effectivity of the
ordinance imposing such levy.lawphil.net
CHAPTER VI
Collection of Real Property Tax
Section 246. Date of Accrual of Tax. - The real property tax for any
year shall accrue on the first day of January and from that date it
shall constitute a lien on the property which shall be superior to any
other lien, mortgage, or encumbrance of any kind whatsoever, and
shall be extinguished only upon the payment of the delinquent tax.
Section 247. Collection of Tax. - The collection of the real property
tax with interest thereon and related expenses, and the enforcement
of the remedies provided for in this Title or any applicable laws, shall
be the responsibility of the city or municipal treasurer concerned.
The city or municipal treasurer may deputize the barangay treasurer
to collect all taxes on real property located in the barangay:
Provided, That the barangay treasurer is properly bonded for the
purpose: Provided, further, That the premium on the bond shall be
paid by the city or municipal government concerned.
Section 248. Assessor to Furnish Local Treasurer with Assessment
Roll. - The provincial, city or municipal assessor shall prepare and
submit to the treasurer of the local government unit, on or before the
thirty-first (31st) day of December each year, an assessment roll
containing a list of all persons whose real properties have been
newly assessed or reassessed and the values of such properties.
Section 249. Notice of Time for Collection of Tax. - The city or
municipal treasurer shall, on or before the thirty-first (31st) day of
January each year, in the case of the basic real property tax and the
additional tax for the Special Education Fund (SEF) or any other
date to be prescribed by the sanggunian concerned in the case of
any other tax levied under this title, post the notice of the dates when
the tax may be paid without interest at a conspicuous and publicly
accessible place at the city or municipal hall. Said notice shall
likewise be published in a newspaper of general circulation in the
locality once a week for two (2) consecutive weeks.
Section 250. Payment of Real Property Taxes in Installments. - The
owner of the real property or the person having legal interest therein
may pay the basic real property tax and the additional tax for Special
Education Fund (SEF) due thereon without interest in four (4) equal
installments; the first installment to be due and payable on or before
March Thirty-first (31st); the second installment, on or before June
Thirty (30); the third installment, on or before September Thirty (30);
and the last installment on or before December Thirty-first (31st),
except the special levy the payment of which shall be governed by
ordinance of the sanggunian concerned.
The date for the payment of any other tax imposed under this Title
without interest shall be prescribed by the sanggunian concerned.
Payments of real property taxes shall first be applied to prior years
delinquencies, interests, and penalties, if any, and only after said
delinquencies are settled may tax payments be credited for the
current period.
Section 251. Tax Discount for Advanced Prompt Payment. - If the
basic real property tax and the additional tax accruing to the Special
Education Fund (SEF) are paid in advance in accordance with the
prescribed schedule of payment as provided under Section 250, the
sanggunian concerned may grant a discount not exceeding twenty
percent (20%) of the annual tax due.
Section 252. Payment Under Protest. -
(a) No protest shall be entertained unless the taxpayer first pays the
tax. There shall be annotated on the tax receipts the words "paid
under protest". The protest in writing must be filed within thirty (30)
days from payment of the tax to the provincial, city treasurer or
municipal treasurer, in the case of a municipality within Metropolitan
Manila Area, who shall decide the protest within sixty (60) days from
receipt.
(b) The tax or a portion thereof paid under protest, shall be held in
trust by the treasurer concerned.
(c) In the event that the protest is finally decided in favor of the
taxpayer, the amount or portion of the tax protested shall be
refunded to the protestant, or applied as tax credit against his
existing or future tax liability.
(d) In the event that the protest is denied or upon the lapse of the
sixty day period prescribed in subparagraph (a), the taxpayer may
avail of the remedies as provided for in Chapter 3, Title II, Book II of
this Code.
Section 253. Repayment of Excessive Collections. - When an
assessment of basic real property tax, or any other tax levied under
this Title, is found to be illegal or erroneous and the tax is accordingly
reduced or adjusted, the taxpayer may file a written claim for refund
or credit for taxes and interests with the provincial or city treasurer
within two (2) years from the date the taxpayer is entitled to such
reduction or adjustment.
The provincial or city treasurer shall decide the claim for tax refund
or credit within sixty (60) days from receipt thereof. In case the claim
for tax refund or credit is denied, the taxpayer may avail of the
remedies as provided in Chapter 3, Title II, Book II of this Code.
Section 254. Notice of Delinquency in the Payment of the Real
Property Tax. -
(a) When the real property tax or any other tax imposed under this
Title becomes delinquent, the provincial, city or municipal treasurer
shall immediately cause a notice of the delinquency to be posted at
the main hall and in a publicly accessible and conspicuous place in
each barangay of the local government unit concerned. The notice
of delinquency shall also be published once a week for two (2)
consecutive weeks, in a newspaper of general circulation in the
province, city, or municipality.
(b) Such notice shall specify the date upon which the tax became
delinquent and shall state that personal property may be distrained
to effect payment. It shall likewise state that any time before the
distraint of personal property, payment of the tax with surcharges,
interests and penalties may be made in accordance with the next
following Section, and unless the tax, surcharges and penalties are
paid before the expiration of the year for which the tax is due except
when the notice of assessment or special levy is contested
administratively or judicially pursuant to the provisions of Chapter 3,
Title II, Book II of this Code, the delinquent real property will be sold
at public auction, and the title to the property will be vested in the
purchaser, subject, however, to the right of the delinquent owner of
the property or any person having legal interest therein to redeem
the property within one (1) year from the date of sale.
Section 255. Interests on Unpaid Real Property Tax. - In case of
failure to pay the basic real property tax or any other tax levied under
this Title upon the expiration of the periods as provided in Section
250, or when due, as the case may be, shall subject the taxpayer to
the payment of interest at the rate of two percent (2%) per month on
the unpaid amount or a fraction thereof, until the delinquent tax shall
have been fully paid: Provided, however, That in no case shall the
total interest on the unpaid tax or portion thereof exceed thirty-six
(36) months.
Section 256. Remedies For The Collection Of Real Property Tax. -
For the collection of the basic real property tax and any other tax
levied under this Title, the local government unit concerned may
avail of the remedies by administrative action thru levy on real
property or by judicial action.
Section 257. Local Governments Lien. - The basic real property tax
and any other tax levied under this Title constitutes a lien on the
property subject to tax, superior to all liens, charges or
encumbrances in favor of any person, irrespective of the owner or
possessor thereof, enforceable by administrative or judicial action,
and may only be extinguished upon payment of the tax and the
related interests and expenses.
Section 258. Levy on Real Property. - After the expiration of the time
required to pay the basic real property tax or any other tax levied
under this Title, real property subject to such tax may be levied upon
through the issuance of a warrant on or before, or simultaneously
with, the institution of the civil action for the collection of the
delinquent tax. The provincial or city treasurer, or a treasurer of a
municipality within the Metropolitan Manila Area, as the case may
be, when issuing a warrant of levy shall prepare a duly authenticated
certificate showing the name of the delinquent owner of the property
or person having legal interest therein, the description of the
property, the amount of the tax due and the interest thereon. The
warrant shall operate with the force of a legal execution throughout
the province, city or a municipality, within the Metropolitan Manila
Area. The warrant shall be mailed to or served upon the delinquent
owner of the real property or person having legal interest therein, or
in case he is out of the country or cannot be located, the
administrator or occupant of the property. At the same time, written
notice of the levy with the attached warrant shall be mailed to or
served upon the assessor and the Registrar of Deeds of the
province, city or municipality within the Metropolitan Manila Area
where the property is located, who shall annotate the levy on the tax
declaration and certificate of title of the property, respectively.
The levying officer shall submit a report on the levy to the
sanggunian concerned within ten (10) days after receipt of the
warrant by the owner of the property or person having legal interest
therein.
Section 259. Penalty for Failure to Issue and Execute Warrant. -
Without prejudice to criminal prosecution under the Revised Penal
Code and other applicable laws, any local treasurer or his deputy
who fails to issue or execute the warrant of levy within one (1) year
from the time the tax becomes delinquent or within thirty (30) days
from the date of the issuance thereof, or who is found guilty of
abusing the exercise thereof in an administrative or judicial
proceeding shall be dismissed from the service.
Section 260. Advertisement and Sale. - Within thirty (30) days after
service of the warrant of levy, the local treasurer shall proceed to
publicly advertise for sale or auction the property or a usable portion
thereof as may be necessary to satisfy the tax delinquency and
expenses of sale. The advertisement shall be effected by posting a
notice at the main entrance of the provincial, city or municipal
building, and in a publicly accessible and conspicuous place in the
barangay where the real property is located, and by publication once
a week for two (2) weeks in a newspaper of general circulation in the
province, city or municipality where the property is located. The
advertisement shall specify the amount of the delinquent tax, the
interest due thereon and expenses of sale, the date and place of
sale, the name of the owner of the real property or person having
legal interest therein, and a description of the property to be sold. At
any time before the date fixed for the sale, the owner of the real
property or person having legal interest therein may stay the
proceedings by paying the delinquent tax, the interest due thereon
and the expenses of sale. The sale shall be held either at the main
entrance of the provincial, city or municipal building, or on the
property to be sold, or at any other place as specified in the notice
of the sale.
Within thirty (30) days after the sale, the local treasurer or his deputy
shall make a report of the sale to the sanggunian concerned, and
which shall form part of his records. The local treasurer shall likewise
prepare and deliver to the purchaser a certificate of sale which shall
contain the name of the purchaser, a description of the property sold,
the amount of the delinquent tax, the interest due thereon, the
expenses of sale and a brief description of the proceedings:
Provided, however, That proceeds of the sale in excess of the
delinquent tax, the interest due thereon, and the expenses of sale
shall be remitted to the owner of the real property or person having
legal interest therein.
The local treasurer may, by ordinance duly approved, advance an
amount sufficient to defray the costs of collection thru the remedies
provided for in this Title, including the expenses of advertisement
and sale.
Section 261. Redemption of Property Sold. - Within one (1) year
from the date of sale, the owner of the delinquent real property or
person having legal interest therein, or his representative, shall have
the right to redeem the property upon payment to the local treasurer
of the amount of the delinquent tax, including the interest due
thereon, and the expenses of sale from the date of delinquency to
the date of sale, plus interest of not more than two percent (2%) per
month on the purchase price from the date of sale to the date of
redemption. Such payment shall invalidate the certificate of sale
issued to the purchaser and the owner of the delinquent real
property or person having legal interest therein shall be entitled to a
certificate of redemption which shall be issued by the local treasurer
or his deputy.
From the date of sale until the expiration of the period of redemption,
the delinquent real property shall remain in possession of the owner
or person having legal interest therein who shall be entitled to the
income and other fruits thereof.
The local treasurer or his deputy, upon receipt from the purchaser of
the certificate of sale, shall forthwith return to the latter the entire
amount paid by him plus interest of not more than two percent (2%)
per month. Thereafter, the property shall be free from lien of such
delinquent tax, interest due thereon and expenses of sale.
Section 262. Final Deed to Purchaser. - In case the owner or person
having legal interest fails to redeem the delinquent property as
provided herein, the local treasurer shall execute a deed conveying
to the purchaser said property, free from lien of the delinquent tax,
interest due thereon and expenses of sale. The deed shall briefly
state the proceedings upon which the validity of the sale rests.
Section 263. Purchase of Property By the Local Government Units
for Want of Bidder. - In case there is no bidder for the real property
advertised for sale as provided herein, the real property tax and the
related interest and costs of sale the local treasurer conducting the
sale shall purchase the property in behalf of the local government
unit concerned to satisfy the claim and within two (2) days thereafter
shall make a report of his proceedings which shall be reflected upon
the records of his office. It shall be the duty of the Registrar of Deeds
concerned upon registration with his office of any such declaration
of forfeiture to transfer the title of the forfeited property to the local
government unit concerned without the necessity of an order from a
competent court.
Within one (1) year from the date of such forfeiture, the taxpayer or
any of his representative, may redeem the property by paying to the
local treasurer the full amount of the real property tax and the related
interest and the costs of sale. If the property is not redeemed as
provided herein, the ownership thereof shall be vested on the local
government unit concerned.
Section 264. Resale of Real Estate Taken for Taxes, Fees, or
Charges. - The sanggunian concerned may, by ordinance duly
approved, and upon notice of not less than twenty (20) days, sell
and dispose of the real property acquired under the preceding
section at public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit concerned.
Section 265. Further Distraint or Levy. - Levy may be repeated if
necessary until the full amount due, including all expenses, is
collected.
Section 266. Collection of Real Property Tax Through the Courts. -
The local government unit concerned may enforce the collection of
the basic real property tax or any other tax levied under this Title by
civil action in any court of competent jurisdiction. The civil action
shall be filed by the local treasurer within the period prescribed in
Section 270 of this Code.
Section 267. Action Assailing Validity of Tax Sale. - No court shall
entertain any action assailing the validity or any sale at public
auction of real property or rights therein under this Title until the
taxpayer shall have deposited with the court the amount for which
the real property was sold, together with interest of two percent (2%)
per month from the date of sale to the time of the institution of the
action. The amount so deposited shall be paid to the purchaser at
the auction sale if the deed is declared invalid but it shall be returned
to the depositor if the action fails.
Neither shall any court declare a sale at public auction invalid by
reason or irregularities or informalities in the proceedings unless the
substantive rights of the delinquent owner of the real property or the
person having legal interest therein have been impaired.
Section 268. Payment of Delinquent Taxes on Property Subject of
Controversy. - In any action involving the ownership or possession
of, or succession to, real property, the court may, motu propio or
upon representation of the provincial, city, or municipal treasurer or
his deputy, award such ownership, possession, or succession to any
party to the action upon payment to the court of the taxes with
interest due on the property and all other costs that may have
accrued, subject to the final outcome of the action.
Section 269. Treasurer to Certify Delinquencies Remaining
Uncollected. - The provincial, city or municipal treasurer or their
deputies shall prepare a certified list of all real property tax
delinquencies which remained uncollected or unpaid for at least one
(1) year in his jurisdiction, and a statement of the reason or reasons
for such non-collection or non-payment, and shall submit the same
to the sanggunian concerned on or before December thirty-first
(31st) of the year immediately succeeding the year in which the
delinquencies were incurred, with a request for assistance in the
enforcement of the remedies for collection provided herein.
Section 270. Periods Within Which To Collect Real Property Taxes.
- The basic real property tax and any other tax levied under this Title
shall be collected within five (5) years from the date they become
due. No action for the collection of the tax, whether administrative or
judicial, shall be instituted after the expiration of such period. In case
of fraud or intent to evade payment of the tax, such action may be
instituted for the collection of the same within ten (10) years from the
discovery of such fraud or intent to evade payment.
The period of prescription within which to collect shall be suspended
for the time during which:
(1) The local treasurer is legally prevented from collecting the tax;
(2) The owner of the property or the person having legal interest
therein requests for reinvestigation and executes a waiver in writing
before the expiration of the period within which to collect; and
(3) The owner of the property or the person having legal interest
therein is out of the country or otherwise cannot be located.
CHAPTER VII
Disposition of Proceeds
Section 271. Distribution of Proceeds. - The proceeds of the basic
real property tax, including interest thereon, and proceeds from the
use, lease or disposition, sale or redemption of property acquired at
a public auction in accordance with the provisions of this Title by the
province or city or a municipality within the Metropolitan Manila Area
shall be distributed as follows:
(a) In the case of provinces:
(1) Province - Thirty-five percent (35%) shall accrue to the general
fund;
(2) Municipality - Forty percent (40%) to the general fund of the
municipality where the property is located; and
(3) Barangay - Twenty-five percent (25%) shall accrue to the
barangay where the property is located.
(b) In the case of cities:
(1) City - Seventy percent (70%) shall accrue to the general fund of
the city; and
(2) Thirty percent (30%) shall be distributed among the component
barangays of the cities where the property is located in the following
manner:
(i) Fifty percent (50%) shall accrue to the barangay where the
property is located;
(ii) Fifty percent (50%) shall accrue equally to all component
barangays of the city; and
(c) In the case of a municipality within the Metropolitan Manila Area:
(1) Metropolitan Manila Authority - Thirty-five percent (35%) shall
accrue to the general fund of the authority;
(2) Municipality - Thirty-five percent (35% shall accrue to the general
fund of the municipality where the property is located;
(3) Barangays - Thirty percent (30%) shall be distributed among the
component barangays of the municipality where the property is
located in the following manner:
(i) Fifty percent (50%) shall accrue to the barangay where the
property is located;
(ii) Fifty percent (50%) shall accrue equally to all component
barangays of the municipality.
(d) The share of each barangay shall be released, without need of
any further action, directly to the barangay treasurer on a quarterly
basis within five (5) days after the end of each quarter and shall not
be subject to any lien or holdback for whatever purpose.
Section 272. Application of Proceeds of the Additional One Percent
SEF Tax. - The proceeds from the additional one percent (1%) tax
on real property accruing to the Special Education Fund (SEF) shall
be automatically released to the local school boards: Provided, That,
in case of provinces, the proceeds shall be divided equally between
the provincial and municipal school boards: Provided, however, That
the proceeds shall be allocated for the operation and maintenance
of public schools, construction and repair of school buildings,
facilities and equipment, educational research, purchase of books
and periodicals, and sports development as determined and
approved by the Local School Board.
Section 273. Proceeds of the Tax on Idle Lands. - The proceeds of
the additional real property tax on idle lands shall accrue to the
respective general fund of the province or city where the land is
located. In the case of a municipality within the Metropolitan Manila
Area, the proceeds shall accrue equally to the Metropolitan Manila
Authority and the municipality where the land is located.
Section 274. Proceeds of the Special Levy. - The proceeds of the
special levy on lands benefited by public works, projects and other
improvements shall accrue to the general fund of the local
government unit which financed such public works, projects or other
improvements.
CHAPTER VIII
Special Provisions
Section 275. General Assessment Revision; Expenses Incident
Thereto. - The sanggunian of provinces, cities and municipalities
within the Metropolitan Manila Area shall provide the necessary
appropriations to defray the expenses incident to the general
revision of real property assessment.
All expenses incident to a general revision of real property
assessment shall, by ordinance of the sangguniang panlalawigan,
be apportioned between the province and the municipality on the
basis of the taxable area of the municipality concerned.
Section 276. Condonation or Reduction of Real Property Tax and
Interest. - In case of a general failure of crops or substantial
decrease in the price of agricultural or agribased products, or
calamity in any province, city or municipality, the sanggunian
concerned, by ordinance passed prior to the first (1st) day of January
of any year and upon recommendation of the Local Disaster
Coordinating Council, may condone or reduce, wholly or partially,
the taxes and interest thereon for the succeeding year or years in
the city or municipality affected by the calamity.
Section 277. Condonation or Reduction of Tax by the President of
the Philippines. - The President of the Philippines may, when public
interest so requires, condone or reduce the real property tax and
interest for any year in any province or city or a municipality within
the Metropolitan Manila Area.
Section 278. Duty of Registrar of Deeds and Notaries Public to
Assist the Provincial, City or Municipal Assessor. - It shall be the
duty of the Registrar of Deeds and notaries public to furnish the
provincial, city or municipal assessor with copies of all contracts
selling, transferring, or otherwise conveying, leasing, or mortgaging
real property received by, or acknowledged before them.
Section 279. Insurance Companies to Furnish Information. -
Insurance companies are hereby required to furnish the provincial,
city or municipal assessor copies of any contract or policy insurance
on buildings, structures, and improvements insured by them or such
other documents which may be necessary for the proper
assessment thereof.
Section 280. Fees in Court Actions. - All court actions, criminal or
civil, instituted at the instance of the provincial, city or municipal
treasurer or assessor under the provisions of this Code, shall be
exempt from the payment of court and sheriff's fees.
Section 281. Fees in Registration of Papers or Documents on Sale
of Delinquent Real Property to Province, City or Municipality. - All
certificates, documents, and papers covering the sale of delinquent
property to the province, city or municipality, if registered in the
Registry of Property, shall be exempt from the documentary stamp
tax and registration fees.
Section 282. Real Property Assessment Notices or Owner's Copies
of Tax Declarations to be Exempt from Postal Charges or Fees. - All
real property assessment notices or owner's copies of tax
declaration sent through the mails by the assessor shall be exempt
from the payment of postal charges or fees.
Section 283. Sale and Forfeiture Before Effectivity of Code. - Tax
delinquencies incurred, and sales and forfeitures of delinquent real
property effected, before the effectivity of this Code shall be
governed by the provisions of applicable laws then in force.
TITLE III
SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS
OF NATIONAL TAXES
CHAPTER I
Allotment of Internal Revenue
Section 284. Allotment of Internal Revenue Taxes. - Local
government units shall have a share in the national internal revenue
taxes based on the collection of the third fiscal year preceding the
current fiscal year as follows:
(a) On the first year of the effectivity of this Code, thirty percent
(30%);
(b) On the second year, thirty-five percent (35%); and
(c) On the third year and thereafter, forty percent (40%).
Provided, That in the event that the national government incurs an
unmanageable public sector deficit, the President of the Philippines
is hereby authorized, upon the recommendation of Secretary of
Finance, Secretary of Interior and Local Government and Secretary
of Budget and Management, and subject to consultation with the
presiding officers of both Houses of Congress and the presidents of
the "liga", to make the necessary adjustments in the internal revenue
allotment of local government units but in no case shall the allotment
be less than thirty percent (30%) of the collection of national internal
revenue taxes of the third fiscal year preceding the current fiscal
year: Provided, further, That in the first year of the effectivity of this
Code, the local government units shall, in addition to the thirty
percent (30%) internal revenue allotment which shall include the
cost of devolved functions for essential public services, be entitled
to receive the amount equivalent to the cost of devolved personal
services.
Section 285. Allocation to Local Government Units. - The share of
local government units in the internal revenue allotment shall be
collected in the following manner:
(a) Provinces - Twenty-three percent (23%);
(b) Cities - Twenty-three percent (23%);
(c) Municipalities - Thirty-four percent (34%); and
(d) Barangays - Twenty percent (20%)
Provided, however, That the share of each province, city, and
municipality shall be determined on the basis of the following
formula:
(a) Population - Fifty percent (50%);
(b) Land Area - Twenty-five percent (25%); and
(c) Equal sharing - Twenty-five percent (25%)
Provided, further, That the share of each barangay with a population
of not less than one hundred (100) inhabitants shall not be less than
Eighty thousand (P80,000.00) per annum chargeable against the
twenty percent (20%) share of the barangay from the internal
revenue allotment, and the balance to be allocated on the basis of
the following formula:
(a) On the first year of the effectivity of this Code:
(1) Population - Forty percent (40%); and
(2) Equal sharing - Sixty percent (60%)
(b) On the second year:
(1) Population - Fifty percent (50%); and
(2) Equal sharing - Fifty percent (50%)
(c) On the third year and thereafter:
(1) Population - Sixty percent (60%); and
(2) Equal sharing - Forty percent (40%).
Provided, finally, That the financial requirements of barangays
created by local government units after the effectivity of this Code
shall be the responsibility of the local government unit concerned.
Section 286. Automatic Release of Shares. -
(a) The share of each local government unit shall be released,
without need of any further action, directly to the provincial, city,
municipal or barangay treasurer, as the case may be, on a quarterly
basis within five (5) days after the end of each quarter, and which
shall not be subject to any lien or holdback that may be imposed by
the national government for whatever purpose.
(b) Nothing in this Chapter shall be understood to diminish the share
of local government units under existing laws.
Section 287. Local Development Projects. - Each local government
unit shall appropriate in its annual budget no less than twenty
percent (20%) of its annual internal revenue allotment for
development projects. Copies of the development plans of local
government units shall be furnished the Department of Interior and
Local Government.
Section 288. Rules and Regulations. - The Secretary of Finance, in
consultation with the Secretary of Budget and Management, shall
promulgate the necessary rules and regulations for a simplified
disbursement scheme designed for the speedy and effective
enforcement of the provisions of this Chapter.
CHAPTER II
Share of Local Government Units in the National Wealth
Section 289. Share in the Proceeds from the Development and
Utilization of the National Wealth. - Local government units shall
have an equitable share in the proceeds derived from the utilization
and development of the national wealth within their respective areas,
including sharing the same with the inhabitants by way of direct
benefits.
Section 290. Amount of Share of Local Government Units. - Local
government units shall, in addition to the internal revenue allotment,
have a share of forty percent (40%) of the gross collection derived
by the national government from the preceding fiscal year from
mining taxes, royalties, forestry and fishery charges, and such other
taxes, fees, or charges, including related surcharges, interests, or
fines, and from its share in any co-production, joint venture or
production sharing agreement in the utilization and development of
the national wealth within their territorial jurisdiction.
Section 291. Share of the Local Governments from any Government
Agency or Owned or Controlled Corporation. - Local government
units shall have a share based on the preceding fiscal year from the
proceeds derived by any government agency or government-owned
or controlled corporation engaged in the utilization and development
of the national wealth based on the following formula whichever will
produce a higher share for the local government unit:
(a) One percent (1%) of the gross sales or receipts of the preceding
calendar year; or
(b) Forty percent (40%) of the mining taxes, royalties, forestry and
fishery charges and such other taxes, fees or charges, including
related surcharges, interests, or fines the government agency or
government owned or controlled corporation would have paid if it
were not otherwise exempt.
Section 292. Allocation of Shares. - The share in the preceding
Section shall be distributed in the following manner:
(a) Where the natural resources are located in the province:
(1) Province - Twenty percent (20%);
(2) Component City/Municipality - Forty-five percent (45%); and
(3) Barangay - Thirty-five percent (35%)
Provided, however, That where the natural resources are located in
two (2) or more provinces, or in two (2) or more component cities or
municipalities or in two (2) or more barangays, their respective
shares shall be computed on the basis of:
(1) Population - Seventy percent (70%); and
(2) Land area - Thirty percent (30%)
(b) Where the natural resources are located in a highly urbanized or
independent component city:
(1) City - Sixty-five percent (65%); and
(2) Barangay - Thirty-five percent (35%)
Provided, however, That where the natural resources are located in
such two (2) or more cities, the allocation of shares shall be based
on the formula on population and land area as specified in paragraph
(a) of this Section.
Section 293. Remittance of the Share of Local Government Units. -
The share of local government units from the utilization and
development of national wealth shall be remitted in accordance with
Section 286 of this Code: Provided, however, That in the case of any
government agency or government-owned or controlled corporation
engaged in the utilization and development of the national wealth,
such share shall be directly remitted to the provincial, city, municipal
or barangay treasurer concerned within five (5) days after the end of
each quarter.
Section 294. Development and Livelihood Projects. - The proceeds
from the share of local government units pursuant to this chapter
shall be appropriated by their respective sanggunian to finance local
government and livelihood projects: Provided, however, That at least
eighty percent (80%) of the proceeds derived from the development
and utilization of hydrothermal. geothermal, and other sources of
energy shall be applied solely to lower the cost of electricity in the
local government unit where such a source of energy is located.
TITLE IV
Credit Financing
Section 295. Scope. - This Title shall govern the power of local
government units to create indebtedness and to enter into credit and
other financial transactions.
Section 296. General Policy. -
(a) It shall be the basic policy that any local government unit may
create indebtedness, and avail of credit facilities to finance local
infrastructure and other socio-economic development projects in
accordance with the approved local development plan and public
investment program.
(b) A local government unit may avail of credit lines from government
or private banks and lending institutions for the purpose of stabilizing
local finances.
Section 297. Loans, Credits, and Other Forms of Indebtedness of
Local Government Units. -
(a) A local government unit may contract loans, credits, and other
forms of indebtedness with any government or domestic private
bank and other lending institutions to finance the construction,
installation, improvement, expansion, operation, or maintenance of
public facilities, infrastructure facilities, housing projects, the
acquisition of real property, and the implementation of other capital
investment projects, subject to such terms and conditions as may be
agreed upon by the local government unit and the lender. The
proceeds from such transactions shall accrue directly to the local
government unit concerned.
(b) A local government unit may likewise secure from any
government bank and lending institution short, medium and long-
term loans and advances against security of real estate or other
acceptable assets for the establishment, development, or expansion
of agricultural, industrial, commercial, house financing projects,
livelihood projects, and other economic enterprises.
(c) Government financial and other lending institutions are hereby
authorized to grant loans, credits, and other forms of indebtedness
out of their loanable funds to local government units for purposes
specified above.
Section 298. Deferred-Payment and other Financial Schemes. -
Provincial, city and municipal governments may likewise acquire
property, plant, machinery, equipment, and such necessary
accessories under a supplier's credit, deferred payment plan, or
either financial scheme.
Section 299. Bonds and Other Long-Term Securities. - Subject to
the rules and regulations of the Central Bank and the Securities and
Exchange Commission, provinces, cities, and municipalities are
hereby authorized to issue bonds, debentures, securities,
collaterals, notes and other obligations to finance self-liquidating,
income-producing development or livelihood projects pursuant to
the priorities established in the approved local development plan or
the public investment program. The sanggunian concerned shall,
through an ordinance approved by a majority of all its members,
declare and state the terms and conditions of the bonds and the
purpose for which the proposed indebtedness is to be incurred.
Section 300. Inter-Local Government Loans, Grants, and Subsidies.
- Provinces, cities, and municipalities may, upon approval of the
majority of all members of the sanggunian concerned and in
amounts not exceeding their surplus funds, extend loans, grants, or
subsidies to other local government units under such terms and
conditions as may be agreed upon by the contracting parties.
Local government units may, upon approval of their respective
sanggunian, jointly or severally contract loans, credits, and other
forms of indebtedness for purposes mutually beneficial to them.
Section 301. Loans from Funds Secured by the National
Government from Foreign Sources. -
(a) The President, or his duly authorized representative, may,
through any government financial or other lending institution, relend
to any province, city, municipality, or barangay, the proceeds of
loans contracted with foreign financial institutions or other
international funding agencies for the purpose of financing the
construction, installation, improvement, expansion, operation, or
maintenance of public utilities and facilities, infrastructure facilities,
or housing projects, the acquisition of real property, and the
implementation of other capital investment projects, subject to such
terms and conditions as may be agreed upon by the President and
the local government unit. The proceeds from such loans shall
accrue directly to the local government concerned.
(b) The President may likewise authorize the relending to local
government units the proceeds of grants secured from foreign
sources, subject to the provisions of existing laws and the applicable
grant agreements. (c) Repayment or amortization of loans including
accrued interest thereon, may be financed partly from the income of
the projects or services and from the regular income of the local
government unit, which must be provided for and appropriated
regularly in its annual budget until the loan and the interest thereon
shall have been fully paid.
Section 302. Financing, Construction, Maintenance, Operation, and
Management of Infrastructure Projects by the Private Sector. -
(a) Local government units may enter into contracts with any duly
prequalified individual contractor, for the financing, construction,
operation, and maintenance of any financially viable infrastructure
facilities, under the build-operate-transfer agreement, subject to the
applicable provisions of Republic Act Numbered Sixty-nine hundred
fifty-seven (R.A. No. 6957) authorizing the financing, construction,
operation and maintenance of infrastructure projects by the private
sector and the rules and regulations issued thereunder and such
terms and conditions provided in this Section.
(b) Local government units shall include in their respective local
development plans and public investment programs priority projects
that may be financed, constructed, operated and maintained by the
private sector under this Section. It shall be the duty of the local
government unit concerned to disclose to the public all projects
eligible for financing under this Section, including official notification
of duly registered contractors and publications in newspapers of
general or local circulation and in conspicuous and accessible public
places. Local projects under the build-operate-and-transfer
agreement shall be confirmed by the local development councils.
(c) Projects implemented under this Section shall be subject to the
following terms and conditions:
(1) The provincial, city or municipal engineer, as the case may be,
upon formal request in writing by the local chief executive, shall
prepare the plans and specifications for the proposed projects,
which shall be submitted to the sanggunian for approval.
(2) Upon approval by the sanggunian of the project plans and
specifications, the provincial, city, or municipal engineer shall, as the
case may be, cause to be published once every week, for two (2)
consecutive weeks in at least one (1) local newspaper which is
circulated in the region, province, city or municipality in which the
project is to be implemented, a notice inviting all duly qualified
contractors to participate in a public bidding for the projects so
approved. The conduct of public bidding and award of contracts for
local government projects under this Section shall be in accordance
with this Code and other applicable laws, rules and regulations.
In the case of a build-operate-and-transfer agreement, the contract
shall be awarded to the lowest complying bidder whose offer is
deemed most advantageous to the local government and based on
the present value of its proposed tolls, fees, rentals, and charges
over a fixed term for the facility to be constructed, operated, and
maintained according to the prescribed minimum design and
performance standards, plans, and specifications. For this purpose,
the winning contractor shall be automatically granted by the local
government unit concerned the franchise to operate and maintain
the facility, including the collection of tolls, fees, rentals, and charges
in accordance with subsection (c-4) hereof.
In the case of a build-operate-and-transfer agreement, the contract
shall be awarded to the lowest complying bidder based on the
present value of its proposed schedule of amortization payments for
the facility to be constructed according to the prescribed minimum
design and performance standards, plans, and specifications.
(3) Any contractor who shall undertake the prosecution of any
project under this Section shall post the required bonds to protect
the interest of the province, city, or municipality, in such amounts as
may be fixed by the sanggunian concerned and the provincial, city
or municipal engineer shall not, as the case may be, allow any
contractor to initiate the prosecution of projects under this Section
unless such contractor presents proof or evidence that he has
posted the required bond.
(4) The contractor shall be entitled to a reasonable return of its
investment in accordance with its bid proposal as accepted by the
local government unit concerned.
In the case of a build-operate-and-transfer agreement, the
repayment shall be made by authorizing the contractor to charge
and collect reasonable tolls, fees, rentals, and charges for the use
of the project facility not exceeding those proposed in the bid and
incorporated in the contract: Provided, That the local government
unit concerned shall, based on reasonableness and equity, approve
the tolls, fees, rentals and charges: Provided, further, That the
imposition and collection of tolls, fees, rentals and charges shall be
for a fixed period as proposed in the bid and incorporated in the
contract which shall in no case exceed fifty (50) years: Provided,
finally, That during the lifetime of the contract, the contractor shall
undertake the necessary maintenance and repair of the facility in
accordance with standards prescribed in the bidding documents and
in the contract.
In the case of a build-operate-and-transfer agreement, the
repayment shall be made through amortization payments in
accordance with the schedule proposed in the bid and incorporated
in the contract.
In case of land reclamation or construction of industrial estates, the
repayment plan may consist of the grant of a portion or percentage
of the reclaimed land or the industrial estate constructed.
(5) Every infrastructure project undertaken under this Section shall
be constructed, operated, and maintained by the contractor under
the technical supervision of the local government unit and in
accordance with the plans, specifications, standards, and costs
approved by it.
(d) The provincial, city, or municipal legal officer shall, as the case
may be, review the contracts executed pursuant to this Section to
determine their legality, validity, enforceability and correctness of
form.
Section 303. Remedies and Sanctions. - Local government unit shall
appropriate in their respective annual budgets such amounts as are
sufficient to pay the loans and other indebtedness incurred or
redeem or retire bonds, debentures, securities, notes and other
obligations issued under this Title: Provided, That failure to provide
the appropriations herein required shall render their annual budgets
inoperative.
TITLE V
Local Fiscal Administration
CHAPTER I
General Provisions
Section 304. Scope. - This Title shall govern the conduct and
management of financial affairs, transactions, and operations of
provinces, cities, municipalities, and barangays.
Section 305. Fundamental Principles. - The financial affairs,
transactions, and operations of local government units shall be
governed by the following fundamental principles:
(a) No money shall be paid out of the local treasury except in
pursuance of an appropriations ordinance or law;
(b) Local government funds and monies shall be spent solely for
public purposes;
(c) Local revenue is generated only from sources expressly
authorized by law or ordinance, and collection thereof shall at all
times be acknowledged properly;
(d) All monies officially received by a local government officer in any
capacity or on any occasion shall be accounted for as local funds,
unless otherwise provided by law;
(e) Trust funds in the local treasury shall not be paid out except in
fulfillment of the purpose for which the trust was created or the funds
received;
(f) Every officer of the local government unit whose duties permit or
require the possession or custody of local funds shall be properly
bonded, and such officer shall be accountable and responsible for
said funds and for the safekeeping thereof in conformity with the
provisions of law;
(g) Local governments shall formulate sound financial plans, and
local budgets shall be based on functions, activities, and projects, in
terms of expected results;
(h) Local budget plans and goals shall, as far as practicable, be
harmonized with national development plans, goals, and strategies
in order to optimize the utilization of resources and to avoid
duplication in the use of fiscal and physical resources;
(i) Local budgets shall operationalize approved local development
plans;
(j) Local government units shall ensure that their respective budgets
incorporate the requirements of their component units and provide
for equitable allocation of resources among these component units;
(k) National planning shall be based on local planning to ensure that
the needs and aspirations of the people as articulated by the local
government units in their respective local development plans are
considered in the formulation of budgets of national line agencies or
offices;
(l) Fiscal responsibility shall be shared by all those exercising
authority over the financial affairs, transactions, and operations of
the local government units; and
(m) The local government unit shall endeavor to have a balanced
budget in each fiscal year of operation.
Section 306. Definitions. - When used in this Title, the term -
(a) "Annual Budget" refers to a financial plan embodying the
estimates of income and expenditures for one (1) fiscal year;
(b) "Appropriation" refers to an authorization made by ordinance,
directing the payment of goods and services from local government
funds under specified conditions or for specific purposes;
(c) "Budget Document" refers to the instrument used by the local
chief executive to present a comprehensive financial plan to the
sanggunian concerned;
(d) "Capital Outlays" refers to appropriations for the purchase of
goods and services, the benefits of which extend beyond the fiscal
year and which add to the assets of the local government unit
concerned, including investments in public utilities such as public
markets and slaughterhouses;
(e) "Continuing Appropriation" refers to an appropriation available to
support obligations for a specified purpose or projects, such as those
for the construction of physical structures or for the acquisition of
real property or equipment, even when these obligations are
incurred beyond the budget year;
(f) "Current Operating Expenditures" refers to appropriations for the
purchase of goods and services for the conduct of normal local
government operations within the fiscal year, including goods and
services that will be used or consumed during the budget year;
(g) "Expected Results" refers to the services, products, or benefits
that shall accrue to the public, estimated in terms of performance
measures or physical targets;
(h) "Fund" refers to a sum of money, or other assets convertible to
cash, set aside for the purpose of carrying out specific activities or
attaining certain objectives in accordance with special regulations,
restrictions, or limitations, and constitutes as independent fiscal and
accounting entity;
(i) "Income" refers to all revenues and receipts collected or received
forming the gross accretions of funds of the local government unit;
(j) "Obligations" refers to an amount committed to be paid by the
local government unit for any lawful act made by an accountable
officer for and in behalf of the local unit concerned;
(k) "Personal Services" refers to appropriations for the payment of
salaries, wages and other compensation of permanent, temporary,
contractual, and casual employees of the local government unit;
(l) "Receipts" refers to income realized from operations and activities
of the local government or are received by it in the exercise of its
corporate functions, consisting of charges for services rendered,
conveniences furnished, or the price of a commodity sold, as well as
loans, contributions or aids from other entities, except provisional
advances for budgetary purposes; and
(m) "Revenue" refers to income derived from the regular system of
taxation enforced under authority of law or ordinance, and, as such,
accrue more or less regularly every year.
CHAPTER II
Local and Other Special Funds
ARTICLE I
Receipts, Safekeeping Article and Disposition of Local Funds
Section 307. Remittance of Government Monies to the Local
Treasury. - Officers of local government authorized to receive and
collect monies arising from taxes, revenues, or receipts of any kind
shall remit the full amount received and collected to the treasury of
such local government unit which shall be credited to the particular
account or accounts to which the monies in question properly
belong.
Section 308. Local Funds. - Every local government unit shall
maintain a General Fund which shall be used to account for such
monies and resources as may be received by and disbursed from
the local treasury. The General Fund shall consist of monies and
resources of the local government which are available for the
payment of expenditures, obligations or purposes not specifically
declared by law as accruing and chargeable to, or payable from, any
other fund.
Section 309. Special Funds. - There shall be maintained in every
provincial, city, or municipal treasury the following special funds:
(a) Special Education Fund (SEF) shall consist of the respective
shares of provinces, cities, municipalities and barangays in the
proceeds of the additional tax on real property to be appropriated for
purposes prescribed in Section 272 of this Code; and
(b) Trust Funds shall consist of private and public monies which
have officially come into the possession of the local government or
of a local government official as trustee, agent or administrator, or
which have been received as a guaranty for the fulfillment of some
obligation. A trust fund shall only be used for the specific purpose for
which it was created or for which it came into the possession of the
local government unit.
Section 310. Separation of Books and Depository Accounts. - Local
accountants and treasurers shall maintain separate books and
depository accounts, respectively, for each fund in their custody or
administration under such rules and regulations as the Commission
on Audit may prescribe.
Section 311. Depository Accounts. - Local treasurers shall maintain
depository accounts in the name of their respective local
government units with banks, preferably government-owned,
located in or nearest to their respective areas of jurisdiction.
Earnings of each depository account shall accrue exclusively
thereto.
Section 312. Separation of Personal Money from Public Funds. -
Local treasurers and other accountable officers shall keep monies
separate and distinct from local public funds in their custody and
shall not make profit out of public money or otherwise apply the
same to any use not authorized by law or ordinance.
ARTICLE II
Special Accounts
Section 313. Special Accounts to be Maintained in the General
Fund. - Local government units shall maintain special accounts in
the general fund for the following:
(a) Public utilities and other economic enterprises;
(b) Loans, interests, bond issues, and other contributions for specific
purposes; and
(c) Development projects funded from the share of the local
government unit concerned in the internal revenue allotment and
such other special accounts which may be created by law or
ordinance.
Receipts, transfers, and expenditures involving the foregoing special
accounts shall be properly taken up thereunder.
Profits or income derived the operation of public utilities and other
economic enterprises, after deduction for the cost of improvement,
repair and other related expenses of the public utility or economic
enterprise concerned, shall first be applied for the return of the
advances or loans made therefor. Any excess shall form part of the
general fund of the local government unit concerned.
CHAPTER III
Budgeting
ARTICLE I
Local Government Budgets
Section 314. Form and Content. -
(a) Local government budgets shall primarily consists of two (2)
parts:
(1) The estimates of income; and
(2) The total appropriations covering the current operating
expenditures and capital outlays.
(b) The budget document shall contain:
(1) A budget message of the local chief executive setting forth in
brief the significance of the executive budget, particularly in relation
to the approved local development plan;
(2) A brief summary of the functions, projects, and activities to be
accomplished in pursuit of the goals and objectives of the local
government unit for the ensuing fiscal year, specifically the delivery
of basic services or facilities enumerated under Section 17 of this
Code;
(3) Summary of financial statements setting forth:
(i) The actual income and expenditures during the immediately
preceding year;
(ii) The actual income and expenditures of the first two (2) quarters
and the estimates of income and expenditures for the last two (2)
quarters of the current fiscal year;
(iii) The estimates of income for the ensuing fiscal year from
ordinances and laws existing at the time the proposed budget is
transmitted, together with other proposals;
(iv) The estimated expenditures necessary to carry out the functions,
projects, and activities of the local government unit for the ensuing
fiscal year;
(v) All essential facts regarding the bonded and other long-term
obligations and indebtedness of the local government unit, if any;
(vi) Summary statement of all statutory and contractual obligations
due; and
(vii) Such other financial statements and data as are deemed
necessary or desirable in order to disclose in all practicable detail
the financial condition of the local government unit.
Section 315. Submission of Detailed Statements of Income and
Expenditures. - (a) On or before the fifteenth (15th) day of July of
each year, local treasurers shall submit to their respective local chief
executives a certified statement, covering the income and
expenditures of the preceding fiscal year, the actual income and
expenditures of the first two (2) quarters of the current year, and the
estimated income and expenditures for the last two (2) quarters of
the current year.
Section 316. Local Finance Committee. - There is hereby created in
every province, city or municipality a local finance committee to be
composed of the local planning and development officer, the local
budget officer, and the local treasurer. It shall exercise the following
functions:
(a) Determine the income reasonably projected as collectible for the
ensuing fiscal year;
(b) Recommend the appropriate tax and other revenue measures or
borrowings which may be appropriate to support the budget;
(c) Recommend to the local chief executive concerned the level of
the annual expenditures and the ceilings of spending for economic,
social, and general services based on the approved local
development plans;
(d) Recommend to the local chief executive concerned the proper
allocation of expenditures for each development activity between
current operating expenditures and capital outlays;
(e) Recommend to the local chief executive concerned the amount
to be allocated for capital outlay under each development activity or
infrastructure project;
(f) Assist the sangguniang panlalawigan in the review and evaluation
of budget of component cities and municipalities in the case of
provincial finance committee, the barangay budgets in the case of
city or municipal finance committee, and recommend the appropriate
action thereon;
(g) Assist the sanggunian concerned in the analysis and review of
annual regular and supplemental budgets of the respective local
government unit to determine compliance with statutory and
administrative requirements; and
(h) Conduct semi-annual review and general examination of cost
and accomplishments against performance standards applied in
undertaking development projects.
A copy of this report shall be furnished the local chief executive and
the sanggunian concerned, and shall be posted in conspicuous and
publicly accessible places in the provinces, cities, municipalities and
barangays.
Section 317. Submission of Budget Proposals by Heads or
Departments or Offices. -
(a) Each head of department or office shall submit a budget proposal
for his department or office to the local chief executive on or before
the fifteenth (15th) of July of each year: Provided, That the budget
proposal of each department of office shall be categorized under
either economic, social or general services: Provided, further, That
each service shall be covered by the budget of at least one (1)
department or office of the local government unit concerned.
The said budget proposal shall be prepared in accordance with such
policy and program guidelines as the local chief executive
concerned may issue in conformity with the local development plan,
the budgetary ceilings prescribed by the local finance committee,
and the general requirements prescribed in this Title.
(b) Budget proposals of departments or offices shall be divided into
two (2) primary categories, namely: the current operating
expenditures and the capital outlays. Such budget proposals shall
contain the following information:
(1) Objectives, functions, and projects showing the general
character and relative importance of the work to be accomplished or
the services to be rendered, and the cost thereof;
(2) Organizational charts and staffing patterns indicating the list of
plantilla positions with their corresponding salaries, and proposals
for reclassification of positions and salary changes, as well as the
creation of new positions with their proposed salary grade, duly
supported by proper justification;
(3) Brief description of the functions, projects and activities for the
ensuing fiscal year, expected results for each function, project and
activity, and the nature of work to be performed, including the objects
of expenditures for each function, project and activity;
(4) Relation of the work and financial proposals to approved local
development plans;
(5) Estimated current operating expenditures and capital outlays
with comparative data for the last two (2) preceding, current, and
ensuing fiscal years; and
(6) Accomplishment reports for the last two (2) preceding and
current fiscal years.
Section 318. Preparation of the Budget by the Local Chief Executive.
- Upon receipt of the statements of income and expenditures from
the treasurer, the budget proposals of the heads of departments and
offices, and the estimates of income and budgetary ceilings from the
local finance committee, the local chief executive shall prepare the
executive budget for the ensuing fiscal year in accordance with the
provisions of this Title.
The local chief executive shall submit the said executive budget to
the sanggunian concerned not later than the sixteenth (16th) of
October of the current fiscal year. Failure to submit such budget on
the date prescribed herein shall subject the local chief executive to
such criminal and administrative penalties as provided for under this
Code and other applicable laws.
Section 319. Legislative Authorization of the Budget. - On or before
the end of the current fiscal year, the sanggunian concerned shall,
through an ordinance, the annual budget of the local government
unit for the ensuing fiscal year on the basis of the estimates of
income and expenditures submitted by the local chief executive.
Section 320. Effectivity of Budgets. - The ordinance enacting the
annual budget shall take effect at the beginning of the ensuing
calendar year. An ordinance enacting a supplemental budget,
however, shall take effect upon its approval or on the date fixed
therein.
The responsibility for the execution of the annual and supplemental
budgets and the accountability therefor shall be vested primarily in
the local chief executive concerned.
Section 321. Changes in the Annual Budget. - All budgetary
proposals shall be included and considered in the budget
preparation process. After the local chief executive concerned shall
have submitted the executive budget to the sanggunian, no
ordinance providing for a supplemental budget shall be enacted,
except when supported by funds actually available as certified by
the local treasurer or by new revenue sources.
A supplemental budget may also be enacted in times of public
calamity by way of budgetary realignment to set aside appropriations
for the purchase of supplies and materials or the payment of
services which are exceptionally urgent or absolutely indispensable
to prevent imminent danger to, or loss of, life or property, in the
jurisdiction of the local government unit or in other areas declared
by the President in a state of calamity. Such ordinance shall clearly
indicate the sources of funds available for appropriations, as certified
under oath by the local treasurer and local accountant and attested
by the local chief executive, and the various items of appropriations
affected and the reasons for the change.
Section 322. Reversion of Unexpended Balances of Appropriations,
Continuing Appropriations. - Unexpended balances of
appropriations authorized in the annual appropriations ordinance
shall revert to the unappropriated surplus of the general fund at the
end of the fiscal year and shall not thereafter be available for the
expenditure except by subsequent enactment. However,
appropriations for capital outlays shall continue and remain valid
until fully spent, reverted or the project is completed. Reversions of
continuing appropriations shall not be allowed unless obligations
therefor have been fully paid or otherwise settled.
The balances of continuing appropriations shall be reviewed as part
of the annual budget preparation and the sanggunian concerned
may approve, upon recommendation of the local chief executive, the
reversion of funds no longer needed in connection with the activities
funded by said continuing appropriations subject to the provisions of
this Section.
Section 323. Failure to Enact the Annual Appropriations. - In case
the sanggunian concerned fails to pass the ordinance authorizing
the annual appropriations at the beginning of the ensuing fiscal year,
it shall continue to hold sessions, without additional remuneration for
its members, until such ordinance is approved, and no other
business may be taken up during such sessions. If the sanggunian
still fails to enact such ordinance after ninety (90) days from the
beginning of the fiscal year, the ordinance authorizing the
appropriations of the preceding year shall be deemed reenacted and
shall remain in force and effect until the ordinance authorizing the
proposed appropriations is passed by the sanggunian concerned.
However, only the annual appropriations for salaries and wages of
existing positions, statutory and contractual obligations, and
essential operating expenses authorized in the annual and
supplemental budgets for the preceding year shall be deemed
reenacted and disbursement of funds shall be in accordance
therewith.
In the implementation of such reenacted ordinance, the local
treasurer concerned shall exclude from the estimates of income for
the preceding fiscal year those realized from nonrecurring sources,
like national aids, proceeds from loans, sale of assets, prior year
adjustments, and other analogous sources of income. No ordinance
authorizing supplemental appropriations shall be passed in place of
the annual appropriations.
In case the revised income estimates be less than the aggregate
reenacted appropriations, the local treasurer concerned shall
accordingly advise the sanggunian concerned which shall, within ten
(10) days from the receipt of such advice, make the necessary
adjustments or reductions. The revised appropriations authorized by
the sanggunian concerned shall then be the basis for
disbursements.
Section 324. Budgetary Requirements. - The budgets of local
government units for any fiscal year shall comply with the following
requirements:
(a) The aggregate amount appropriated shall not exceed the
estimates of income;
(b) Full provision shall be made for all statutory and contractual
obligations of the local government unit concerned: Provided,
however, That the amount of appropriations for debt servicing shall
not exceed twenty percent (20%) of the regular income of the local
government unit concerned;
(c) In the case of provinces, cities, and municipalities, aid to
component barangays shall be provided in amounts of not less than
One thousand pesos (P1,000.00) per barangay; and
(d) Five percent (5%) of the estimated revenue from regular sources
shall be set aside as an annual lump sum appropriation for
unforeseen expenditures arising from the occurrence of calamities:
Provided, however, That such appropriation shall be used only in the
area, or a portion thereof, of the local government unit or other areas
declared by the President in a state of calamity.
Section 325. General Limitations. - The use of the provincial, city,
and municipal funds shall be subject to the following limitations:
(a) The total appropriations, whether annual or supplemental, for
personal services of a local government unit for one (1) fiscal year
shall not exceed forty-five percent (45%) in the case of first to third
class provinces, cities and municipalities, and fifty-five percent
(55%) in the case of fourth class or lower, of the total annual income
from regular sources realized in the next preceding fiscal year. The
appropriations for salaries, wages, representation and
transportation allowances of officials and employees of the public
utilities and economic enterprises owned, operated, and maintained
by the local government unit concerned shall not be included in the
annual budget or in the computation of the maximum amount for
personal services. The appropriations for the personal services of
such economic enterprises shall be charged to their respective
budgets;
(b) No official or employee shall be entitled to a salary rate higher
than the maximum fixed for his position or other positions of
equivalent rank by applicable laws or rules and regulations issued
thereunder;
(c) No local fund shall be appropriated to increase or adjust salaries
or wages of officials and employees of the national government,
except as may be expressly authorized by law;
(d) In cases of abolition of positions and the creation of new ones
resulting from the abolition of existing positions in the career service,
such abolition or creation shall be made in accordance with pertinent
provisions of this code and the civil service law, rules and
regulations;
(e) Positions in the official plantilla for career positions which are
occupied by incumbents holding permanent appointments shall be
covered by adequate appropriations;
(f) No changes in designation or nomenclature of positions resulting
in a promotion or demotion in rank or increase or decrease in
compensation shall be allowed, except when the position is actually
vacant, and the filling of such positions shall be strictly made in
accordance with the civil service law, rules and regulations;
(g) The creation of new positions and salary increases or
adjustments shall in no case be made retroactive;
(h) The annual appropriations for discretionary purposes of the local
chief executive shall not exceed two percent (2%) of the actual
receipts derived from basic real property tax in the next preceding
calendar year. Discretionary funds shall be disbursed only for public
purposes to be supported by appropriate vouchers and subject to
such guidelines as may be prescribed by law. No amount shall be
appropriated for the same purpose except as authorized under this
Section.
Section 326. Review of Appropriation Ordinances of Provinces,
Highly-Urbanized Cities, Independent Component Cities, and
Municipalities within the Metropolitan Manila Area. - The Department
of Budget and Management shall review ordinances authorizing the
annual or supplemental appropriations of provinces, highly-
urbanized cities, independent component cities, and municipalities
within the Metropolitan Manila Area in accordance with the
immediately succeeding Section.
Section 327. Review of Appropriation Ordinances of Component
Cities and Municipalities. - The sangguniang panlalawigan shall
review the ordinance authorizing annual or supplemental
appropriations of component cities and municipalities in the same
manner and within the same period prescribed for the review of other
ordinances.
If within ninety (90) days from receipt of copies of such ordinance,
the sangguniang panlalawigan takes no action thereon, the same
shall be deemed to have been reviewed in accordance with law and
shall continue to be in full force and effect. If within the same period,
the sangguniang panlalawigan shall have ascertained that the
ordinance authorizing annual or supplemental appropriations has
not complied with the requirements set forth in this Title, the
sangguniang panlalawigan shall, within the ninety-day period
hereinabove prescribed declare such ordinance inoperative in its
entirety or in part. Items of appropriation contrary to limitations
prescribed in this Title or in excess of the amounts prescribed herein
shall be disallowed or reduced accordingly.
The sangguniang panlalawigan shall within the same period advise
the sangguniang panlungsod or sangguniang bayan concerned
through the local chief executive of any action on the ordinance
under review. Upon receipt of such advice, the city or municipal
treasurer concerned shall not make further disbursements of funds
from any of the items of appropriation declared inoperative,
disallowed or reduced.
Section 328. Duration of Appropriation. - Appropriations for ordinary
administrative purposes not duly obligated shall terminate with the
fiscal year and all unexpended balances thereof shall be
automatically reverted on the thirty-first (31st) day of December of
each year to the general fund of the local government unit.
ARTICLE II
Barangay Budgets
Section 329. Barangay Funds. - Unless otherwise provided in this
Title, all the income of the barangay from whatever source shall
accrue to its general fund and shall, at the option of the barangay
concerned, be kept as trust fund in the custody of the city or
municipal treasurer or be deposited in a bank, preferably
government-owned, situated in or nearest to its area of jurisdiction.
Such funds shall be disbursed in accordance with the provisions of
this Title. Ten percent (10%) of the general fund of the barangay
shall be set aside for the sangguniang kabataan.
Section 330. Submission of Detailed Statements of Income and
Expenditures for the Barangay Budgets. - On or before the fifteenth
(15th) day of September of each year, the barangay treasurer shall
submit to the punong barangay a statement covering the estimates
of income and expenditures for the ensuing fiscal year, based on a
certified statement issued by the city or municipal treasurer covering
the estimates of income from local sources for the barangay
concerned.
Section 331. Preparation of the Barangay Budget. -
(a) Upon receipt of the statement of income and expenditures from
the barangay treasurer, the punong barangay shall prepare the
barangay budget for the ensuing fiscal year in the manner and within
the period prescribed in this Title and submit the annual barangay
budget to the sangguniang barangay for legislative enactment.
(b) The total annual appropriations for personal services of a
barangay for one (1) fiscal year shall not exceed fifty-five percent
(55%) of the total annual income actually realized from local sources
during the next preceding fiscal year.
(c) The barangay budget shall likewise be subject to the same
budgetary requirements and limitations hereinabove prescribed.
Section 332. Effectivity of Barangay Budgets. - The ordinance
enacting the annual budget shall take effect at the beginning of the
ensuing calendar year. An ordinance enacting a supplemental
budget, however, shall take effect upon its approval or on the date
fixed therein.
The responsibility for the execution of the annual and supplemental
budgets and the accountability therefor shall be vested primarily in
the punong barangay concerned.
Section 333. Review of the Barangay Budget. -
(a) Within ten (10) days from its approval, copies of the barangay
ordinance authorizing the annual appropriations shall be furnished
the sangguniang panlungsod or the sangguniang bayan, as the case
may be, through the city or municipal budget officer. The sanggunian
concerned shall have the power to review such ordinance in order
to ensure that the provisions of this Title are complied with. If within
sixty (60) days after the receipt of the ordinance, the sanggunian
concerned takes no action thereon, the same shall continue to be in
full force and effect. If within the same period, the sanggunian
concerned shall have ascertained that the ordinance contains
appropriations in excess of the estimates of the income duly certified
as collectible, or that the same has not complied with the budgetary
requirements set forth in this Title, the said ordinance shall be
declared inoperative in its entirety or in part. Items of appropriation
contrary to, or in excess of, any of the general limitations or the
maximum amount prescribed in this Title shall be disallowed or
reduced accordingly.
(b) Within the period hereinabove fixed, the sangguniang
panlungsod or sangguniang bayan concerned shall return the
barangay ordinance, through the city or municipal budget officer, to
the punong barangay with the advice of action thereon for proper
adjustments, in which event, the barangay shall operate on the
ordinance authorizing annual appropriations of the preceding fiscal
year until such time that the new ordinance authorizing annual
appropriations shall have met the objections raised. Upon receipt of
such advice, the barangay treasurer or the city or municipal
treasurer who has custody of the funds shall not make further
disbursement from any item of appropriation declared inoperative,
disallowed, or reduced.
Section 334. Barangay Financial Procedures. -
(a) The barangay treasurer shall collect all taxes, fees, and other
charges due and contributions accruing to the barangay for which
he shall issue official receipts, and shall deposit all collections with
the city or municipal treasury or in the depository account maintained
in the name of the barangay within five (5) days after receipt thereof.
He may collect real property taxes and such other taxes as may be
imposed by a province, city or municipality that are due in his
barangay only after being deputized by the local treasurer
concerned for the purpose.
(b) The barangay treasurer may be authorized by the sangguniang
barangay to make direct purchases amounting to not more than One
thousand pesos (P1,000.00) at any time for the ordinary and
essential needs of the barangay. The petty cash that the barangay
treasurer may be authorized to hold for the purpose shall not exceed
twenty percent (20%) of the funds available and to the credit of the
barangay treasury.
(c) The financial records of the barangay shall be kept in the office
of the city or municipal accountant in simplified manner as
prescribed by the Commission on Audit. Representatives of the
Commission on Audit shall audit such accounts annually or as often
as may be necessary and make a report of the audit to the
sangguniang panlungsod or sangguniang bayan, as the case may
be. The Commission on Audit shall prescribe and put into effect
simplified procedures for barangay finances within six (6) months
following the effectivity of this Code.
CHAPTER IV
Expenditures, Disbursements, Accounting and Accountability
Section 335. Prohibitions Against Expenditures for Religious or
Private Purposes. - No public money or property shall be
appropriated or applied for religious or private purposes.
Section 336. Use of Appropriated Funds and Savings. - Funds shall
be available exclusively for the specific purpose for which they have
been appropriated. No ordinance shall be passed authorizing any
transfer of appropriations from one item to another. However, the
local chief executive or the presiding officer of the sanggunian
concerned may, by ordinance, be authorized to augment any item in
the approved annual budget for their respective offices from savings
in other items within the same expense class of their respective
appropriations.
Section 337. Restriction Upon Limit of Disbursements. -
Disbursements in accordance with appropriations in the approved
annual budget may be made from any local fund in the custody of
the treasurer, but the total disbursements from any local fund shall
in no case exceed fifty percent (50%) of the uncollected estimated
revenue accruing to such local fund in addition to the actual
collections: Provided, however, That no cash overdraft in any local
fund shall be incurred at the end of the fiscal year.
In case of emergency arising from a typhoon, earthquake, or any
other calamity, the sanggunian concerned may authorize the local
treasurer to continue making disbursements from any local fund in
his possession in excess of the limitations herein provided, but only
for such purposes and amounts included in the approved annual
budgets.
Any overdraft which may be incurred at the end of the year in any
local fund by virtue of the provisions hereof shall be covered with the
first collections of the immediately succeeding fiscal year accruing
to such local fund.
Section 338. Prohibitions Against Advance Payments. - No money
shall be paid on account of any contract under which no services
have been rendered or goods delivered.
Section 339. Cash Advances. - No cash advance shall be granted
to any local official or employee, elective or appointive, unless made
in accordance with the rules and regulations as the Commission on
Audit may prescribe.
Section 340. Persons Accountable for Local Government Funds. -
Any officer of the local government unit whose duty permits or
requires the possession or custody of local government funds shall
be accountable and responsible for the safekeeping thereof in
conformity with the provisions of this Title. Other local officers who,
though not accountable by the nature of their duties, may likewise
be similarly held accountable and responsible for local government
funds through their participation in the use or application thereof.
Section 341. Prohibitions Against Pecuniary Interest. - Without
prejudice to criminal prosecution under applicable laws, any local
treasurer, accountant, budget officer, or other accountable local
officer having any pecuniary interest, direct or indirect, in any
contract, work or other business of the local government unit of
which he is an accountable officer shall be administratively liable
therefor.
Section 342. Liability for Acts Done Upon Direction of Superior
Officer, or Upon Participation of Other Department Heads or Officers
of Equivalent Rank. - Unless he registers his objection in writing, the
local treasurer, accountant, budget officer, or other accountable
officer shall not be relieved of liability for illegal or improper use or
application or deposit of government funds or property by reason of
his having acted upon the direction of a superior officer, elective or
appointive, or upon participation of other department heads or
officers of equivalent rank. The superior officer directing, or the
department head participating in such illegal or improper use or
application or deposit of government funds or property, shall be
jointly and severally liable with the local treasurer, accountant,
budget officer, or other accountable officer for the sum or property
so illegally or improperly used, applied or deposited.
Section 343. Prohibition Against Expenses for Reception and
Entertainment. - No money shall be appropriated, used, or paid for
entertainment or reception except to the extent of the representation
allowances authorized by law or for the reception of visiting
dignitaries of foreign governments or foreign missions, or when
expressly authorized by the President in specific cases.
Section 344. Certification, and Approval of, Vouchers. - No money
shall be disbursed unless the local budget officer certifies to the
existence of appropriation that has been legally made for the
purpose, the local accountant has obligated said appropriation, and
the local treasurer certifies to the availability of funds for the purpose.
Vouchers and payrolls shall be certified to and approved by the head
of the department or office who has administrative control of the fund
concerned, as to validity, propriety, and legality of the claim involved.
Except in cases of disbursements involving regularly recurring
administrative expenses such as payrolls for regular or permanent
employees, expenses for light, water, telephone and telegraph
services, remittances to government creditor agencies such as
GSIS, SSS, LDP, DBP, National Printing Office, Procurement
Service of the DBM and others, approval of the disbursement
voucher by the local chief executive himself shall be required
whenever local funds are disbursed.
In cases of special or trust funds, disbursements shall be approved
by the administrator of the fund.
In case of temporary absence or incapacity of the department head
or chief of office, the officer next-in-rank shall automatically perform
his function and he shall be fully responsible therefor.
Section 345. Officials Authorized to Draw Checks in Settlement of
Obligations. - Checks in obligations shall be drawn by the local
treasurer and countersigned by the local administrator.
In case of temporary absence or incapacity of the foregoing officials,
these duties shall devolve upon their immediate assistants.
Section 346. Disbursements of Local Funds and Statement of
Accounts. - Disbursements shall be made in accordance with the
ordinance authorizing the annual or supplemental appropriations
without the prior approval of the sanggunian concerned. Within thirty
(30) days after the close of each month, the local accountant shall
furnish the sanggunian with such financial statements as may be
prescribed by the Commission on Audit. In the case of the year-end
statement of accounts, the period shall be sixty (60) days after the
thirty-first (31st) of December.
Section 347. Rendition of Accounts. - Local treasurers, accountants
and other local accountable officers shall render their accounts
within such time, in such form, style, and content and under such
regulations as the Commission on Audit may prescribe.
Provincial, city, and municipal auditors shall certify the balances
arising in the accounts settled by them to the Chairman of the
Commission on Audit and to the local treasurer, accountant, and
other accountable officers. Copies of the certification shall be
prepared and furnished other local officers who may be held jointly
and severally liable for any loss or illegal, improper or unauthorized
use or misappropriation of local funds or property.
Section 348. Auditorial Visitation. - The books, accounts, papers,
and cash of local treasurer, accountant, budget officer, or other
accountable officers shall at all times be open for inspection of the
Commission on Audit or its duly authorized representative.
In case an examination of the accounts of a local treasurer discloses
a shortage in cash which should be on hand, it shall be the duty of
the examining officer to seize the office and its contents, notify the
Commission on Audit, the local chief executive concerned, and the
local accountant. Thereupon, the examining officer shall
immediately turn over to the accountable officer next-in-rank in the
local treasury service, unless the said officer is likewise under
investigation, the office of the treasurer and its contents, and close
and render his accounts on the date of turnover. In case the
accountable officer next in rank is under investigation, the auditor
shall take full possession of the office and its contents, close and
render his accounts on the date of taking possession, and
temporarily continue the public business of such office until such
time that the local treasurer is restored or a successor has been duly
designated. The local treasurer or accountable officer found with
such shortage shall be automatically suspended from office.
Section 349. Accounting for Revenues. - Estimated revenues which
remain unrealized at the close of the fiscal year shall not be booked
or credited to the unappropriated surplus or any other account.
Section 350. Accounting for Obligations. - All lawful expenditures
and obligations incurred during a fiscal year shall be taken up in the
accounts of that year.
Section 351. General Liability for Unlawful Expenditures. -
Expenditures of funds or use of property in violation of this Title and
other laws shall be a personal liability of the official or employee
responsible therefor.
Section 352. Posting of the Summary of Income and Expenditures.
- Local treasurers, accountants, budget officers, and other
accountable officers shall, within thirty (30) days from the end of the
fiscal year, post in at least three (3) publicly accessible and
conspicuous places in the local government unit a summary of all
revenues collected and funds received including the appropriations
and disbursements of such funds during the preceding fiscal year.
Section 353. The Official Fiscal Year. - The official fiscal year of local
government units shall be the period beginning with the first day of
January and ending with the thirty-first day of December of the same
year.
Section 354. Administrative Issuances; Budget Operations Manual.
- The Secretary of Budget and Management jointly with the
Chairman of the Commission on Audit shall, within one (1) year from
the effectivity of this Code, promulgate a Budget Operations Manual
for local government units to improve and systematize methods,
techniques, and procedures employed in budget preparation,
authorization, execution, and accountability.
TITLE VI
Property and Supply Management in the Local Government
Units
Section 355. Scope. - This Title shall govern the procurement, care,
utilization, custody, and disposal of supplies, as defined herein, by
local government units and the other aspects of supply management
at the local levels.
Section 356. General Rule in Procurement or Disposal. - Except as
otherwise provided herein, acquisition of supplies by local
government units shall be through competitive public bidding.
Supplies which have become unserviceable or no longer needed
shall be sold, whenever applicable, at public auction, subject to
applicable rules and regulations.
Section 357. Definition of Terms. - When used in this Title, the term
(a) "Lowest Complying and Responsible Bid" refers to the proposal
of one who offers the lowest price, meets all the technical
specifications and requirements of the supplies desired and, as a
dealer in the line of supplies involved, maintains a regular
establishment, and has complied consistently with previous
commitments;
(b) "Suitable Substitute" refers to that kind of article which would
serve substantially the same purpose or produce substantially the
same results as the brand, type, or make of article originally desired
or requisitioned;
(c) "Supplies" includes everything, except real property, which may
be needed in the transaction of public business or in the pursuit of
any undertaking, project, or activity, whether in the nature of
equipment, furniture, stationary materials for construction or
personal property of any sort, including non-personal or contractual
services such as the repair and maintenance of equipment and
furniture, as well as trucking, hauling, janitorial, security, and related
services; and
(d) "Terms and Conditions" refer to other requirements not affecting
the technical specifications and requirements of the required
supplies desired such as bonding, terms of delivery and payment,
and related preferences.
Section 358. Requirement of Requisition. - Any order for supplies
shall be filled by the provincial or city general services officer or the
municipal or barangay treasurer concerned, as the case may be, for
any office or department of a local government unit only upon written
requisition as hereinafter provided.
Section 359. Officers Having Authority to Draw Requisitions. -
Requisitions shall be prepared by the head of office or department
needing the supplies, who shall certify as to their necessity for official
use and specify the project or activity where the supplies are to be
used.
Section 360. Certification by the Local Budget Officer, Accountant,
and Treasurer. - Every requisition must be accompanied by a
certificate signed by the local budget officer, the local accountant,
and the local treasurer showing that an appropriation therefor exists,
the estimated amount of such expenditure has been obligated, and
the funds are available for the purpose, respectively.
Section 361. Approval of Requisitions. - Approval of the requisition
by the head of office or department concerned who has
administrative control of the appropriation against which the
proposed expenditure is chargeable is deemed sufficient, except in
case of requisition for supplies to be carried in stock which shall be
approved by the local chief executive concerned: Provided, That
such supplies are listed or included in the annual procurement plan
and the maximum quantity thereof does not exceed the estimated
consumption corresponding to a programmed three-month period:
Provided, further, That nothing herein contained shall be held as
authorizing the purchase of furniture and equipment for stock
purposes.
Section 362. Call for Bids. - When procurement is to be made by
local government units, the provincial or city general services officer
or the municipal or barangay treasurer shall call bids for open public
competition. The call for bids shall show the complete specifications
and technical descriptions of the required supplies and shall embody
all terms and conditions of participation and award, terms of delivery
and payment, and all other covenants affecting the transaction. In all
calls for bids, the right to waive any defect in the tender as well as
the right to accept the bid most advantageous to the government
shall be reserved. In no case, however, shall failure to meet the
specifications or technical requirements of the supplies desired be
awarded.
Section 363. Publication of Call for Bids. - The call for bids shall be
given the widest publicity possible, sending, by mail or otherwise,
any known prospective participant in the locality, of copies of the call
and by posting copies of the same in at least three (3) publicly
accessible and conspicuous places in the provincial capitol or city,
municipal, or barangay hall, as the case may be.
The notice of the bidding may likewise be published in a newspaper
of general circulation in the territorial jurisdiction of the local
government unit concerned when the provincial or city general
services officer or the municipal or barangay treasurer, as the case
may be, deems it necessary in order to obtain the lowest responsible
and complying bid.
The opening of bids shall only be made in the presence of the
provincial or city auditor or his duly authorized representative who
shall initial and secure copies of the bids and certify the abstract of
the bidding.
Section 364. The Committee on Awards. - There shall be in every
province, city or municipality a committee on awards to decide the
winning bids and questions of awards on procurement and disposal
of property.
The Committee on Awards shall be composed of the local chief
executive as chairman, the local treasurer, the local accountant, the
local budget officer, the local general services officer, and the head
of office or department for whose use the supplies are being
procured, as members. In case a head of office or department would
sit in a dual capacity, a member of the sanggunian elected from
among its members shall sit as a member. The committee on
awards at the barangay level shall be the sangguniang barangay.
No national official shall sit as a member of the committee on
awards.
The results of the bidding shall be made public by conspicuously
posting the same in the provincial capitol or city, municipal, or
barangay hall.
Section 365. Rule on Awards. - Awards in the procurement of
supplies shall be given to the lowest complying and responsible bid
which meets all the terms and conditions of the contract or
undertaking.
Section 366. Procurement Without Public Bidding. - Procurement of
supplies may be made without the benefit of public bidding under
any of the following modes:
(a) Personal canvass of responsible merchants;
(b) Emergency purchase;
(c) Negotiated purchase;
(d) Direct purchase from manufacturers or exclusive distributors;
and
(e) Purchase from other government entities.
Section 367. Procurement through Personal Canvass. - Upon
approval by the Committee on Awards, procurement of supplies may
be effected after personal canvass of at least three (3) responsible
suppliers in the locality by a committee of three (3) composed of the
local services officer or the municipal or barangay treasurer, as the
case may be, the local accountant, and the head of office or
department for whose use the supplies are being procured. The
award shall be decided by the Committee on Awards.
Purchases under this Section shall not exceed the amounts
specified hereunder for all items in any one (1) month for each local
government unit:
Provinces and Cities and Municipalities within the Metropolitan
Manila Area:
First and Second Class - One hundred fifty thousand pesos
(P150,000.00)
Third and Fourth Class - One hundred thousand pesos
(P100,000.00)
Fifth and Sixth Class - Fifty thousand pesos (P50,000.00)
Municipalities:
First Class - Sixty thousand pesos (P60,000.00)
Second and Third Class - Forty thousand pesos (P40,000.00)
Fourth Class and Below - Twenty thousand pesos (P20,000.00)
Section 368. Emergency Purchase. - In cases of emergency where
the need for the supplies is exceptionally urgent or absolutely
indispensable and only to prevent imminent danger to, or loss of, life
or property, local government units may, through the local chief
executive concerned, make emergency purchases or place repair
orders, regardless of amount, without public bidding. Delivery of
purchase orders or utilization of repair orders pursuant to this
Section shall be made within ten (10) days after placement of the
same. Immediately after the emergency purchase or repair order is
made, the chief of office or department making the emergency
purchase or repair order shall draw a regular requisition to cover the
same which shall contain the following:
(a) A complete description of the supplies acquired or the work done
or to be performed;
(b) By whom furnished or executed;
(c) Date of placing the order and the date and time of delivery or
execution;
(d) The unit price and the total contract price;
(e)A brief and concise explanation of the circumstances why
procurement was of such urgency that the same could not be done
through the regular course without involving danger to, or loss of, life
or property;
(f) A certification of the provincial or city general services or the
municipal or barangay treasurer, as the case may be, to the effect
that the price paid or contracted for was the lowest at the time of
procurement; and
(g) A certification of the local budget officer as to the existence of
appropriations for the purpose, the local accountant as to the
obligation of the amount involved, and the local treasurer as to the
availability of funds. The goods or services procured under this
Section must be utilized or availed of within fifteen (15) days from
the date of delivery or availability.
Without prejudice to criminal prosecution under applicable laws, the
local chief executive, the head of department, or the chief of office
making the procurement shall be administratively liable for any
violation of this Section and shall be a ground for suspension or
dismissal from service.
Section 369. Negotiated Purchase. -
(a) In cases where public biddings have failed for two (2)
consecutive times and no suppliers have qualified to participate or
win in the biddings, local government units may, through the local
chief executive concerned, undertake the procurement of supplies
by negotiated purchase, regardless of amount, without public
bidding: Provided, however, That the contract covering the
negotiated purchase shall be approved by the sanggunian
concerned. Delivery of purchase orders or utilization of repair orders
pursuant to this Section shall be made within seven (7) days after
placement of the same. Immediately after the negotiated purchase
or repair order is made, the local chief executive concerned shall
draw a regular requisition to cover the same which shall contain the
following:
(1) A complete description of the supplies acquired or the work done
or to be performed;
(2) By whom furnished or executed;
(3) Date of placing the order and the date and time of delivery or
execution;
(4) The unit price and the total contract price;
(5) A certification of the provincial or city general services of the
municipal or barangay treasurer, as the case may be, to the effect
that the price paid or contracted for was the lowest at the time of
procurement;
(6) A certification to the effect that the price paid or contracted for
was the lowest at the time of procurement; and
(7) A certification of the local budget officer as to the existence of
appropriations for the purpose, the local accountant as to the
obligation of the amount involved, and the local treasurer as to the
availability of funds.
(b) In case of repeat orders for regular supplies, procurement may
be made by negotiated purchase: Provided, That the repeat order is
made within three (3) months from the last procurement of the same
item: Provided, further, That the same terms and conditions of sale
are obtained for the said repeat order.
Section 370. Procurement from Duly Licensed Manufacturer. -
Procurement may be made directly from duly licensed
manufacturers in cases of supplies of Philippine manufacture or
origin and in case there are two (2) or more manufacturers shall be
conducted to obtain the lowest price for the quality of the said
supplies.
Section 371. Procurement from Exclusive Philippine Agents or
Distributors. - Procurement may, in the case of supplies of foreign
origin, preferably be made directly from the exclusive or reputable
Philippine distributors or agents, subject to the following conditions:
(a) That the Philippine distributor has no subdealers selling at lower
prices; and
(b) That no suitable substitutes or substantially the same quality are
available at lower prices.
Section 372. Procurement from Government Entities. - Procurement
may be made directly from the government entities producing the
required supplies, including units or agencies of foreign
governments with which the Philippines maintains diplomatic
relations. In the latter case, prior authority from the Office of the
President shall be required.
Section 373. Annual Procurement Program. -
(a) On or before the fifteenth (15th) day of July each year, the local
chief executive shall prepare an annual procurement program for the
ensuing fiscal year which shall contain an itemized list of the
estimated quantity of supplies needed for such year, a complete
description thereof as to kind, quality, estimated cost, and balance
on hand: Provided, however, That the total estimated cost of the
approved annual procurement program shall not exceed the total
appropriations authorized for the acquisition of supplies. The local
government units may augment the supplies and equipment
provided by the Supreme Court to the lower courts located in their
respective jurisdictions.
(b) Except in emergency cases or where urgent indispensable needs
could not have been reasonably anticipated, no purchase of supplies
shall be made unless included in. or covered by, the approved
procurement program. (c) The conversion of excess cash into
supplies stock is hereby prohibited except to the extent of the kind
and quantity specified in the approved annual procurement plan. A
violation of this Section shall be a ground for suspension or dismissal
of any political or employee responsible therefor.
Section 374. Establishment of an Archival System. - Every local
government unit shall provide for the establishment of archival
system to ensure the safety and protection of all government
property, public documents or records such as records of births,
marriages, property inventory, land assessments, land ownership,
tax payments, tax accounts, and business permits, and such other
records or documents of public interest in the various departments
and offices of the provincial, city, or municipal government
concerned.
Section 375. Primary and Secondary Accountability for Government
Property. -
(a) Each head of department or office of a province, city, municipality
or barangay shall be primarily accountable for all government
property assigned or issued to his department or office. The person
or persons entrusted with the possession or custody of government
property under the accountability of any head of department or office
shall be immediately accountable to such officer.
(b) The head of a department or office primarily accountable for
government property may require any person in possession of the
property or having custody and control thereof under him to keep
such records and make reports as may be necessary for his own
information and protection.
(c) Buildings and other physical structures shall be under the
accountability and responsibility of the provincial or city general
services officer or the municipal mayor or punong barangay, as the
case may be. (d) Every officer primarily accountable for government
property shall keep a complete record of all properties under his
charge and render his accounts therefor semiannually to the
provincial or city general services officer or the municipal mayor or
punong barangay, as the case may be.
Section 376. Responsibility for Proper Use and Care of Government
Property. - The person in actual physical possession of government
property or entrusted with its custody and control shall be
responsible for its proper use and care and shall exercise due
diligence in the utilization and safekeeping thereof.
Section 377. Measure of Liability of Persons Accountable for
Government Property. -
(a) The person immediately accountable for government property
shall be liable for its money value in case of the illegal, improper or
unauthorized use or misapplication thereof, by himself or any other
person for whose acts he may be responsible, and he shall be liable
for all loss, damage, or deterioration occasioned by negligence in
the keeping or use of property unless it is proved that he has
exercised due diligence and care in the utilization and safekeeping
thereof.
(b) Unless he registers his objection in writing, an accountable
person shall not be relieved from liability by reason of his having
acted under the direction of a superior officer in using property with
which he is chargeable; but the officer directing any illegal,
unauthorized or improper use of property shall first be required to
answer therefor.
(c) In cases of loss, damage, or deterioration of government property
arising from, or attributable to, negligence in security, the head of
the security agency shall be held liable therefor.
Section 378. Credit for Loss Occurring in Transit or Due to Casualty.
- When a loss of government property occurs while the same is in
transit or is caused by fire, theft, force majeure, or other casualty,
the officer accountable therefor or having custody thereof shall
immediately notify the provincial or city auditor concerned within
thirty (30) days from the date the loss occurred or for such longer
period as the provincial, city or municipal auditor, as the case may
be, may in the particular case allow, and he shall present his
application for relief, with the available evidence in support thereof.
An officer who fails to comply with this requirement shall not be
relieved of liability or allowed credit for any such loss in the
settlement of his accounts.
A provincial, city or municipal auditor shall not allow credit for these
losses unless so expressly authorized by the Chairman of the
Commission on Audit, to the exercised only if the loss is not in excess of
fifty thousand pesos (P50,000.00). In any case when the allowance of
credit is not within the competence of the provincial, city or municipal
auditor, the application and evidence, with the recommendation of the
auditor concerned, shall be forwarded to the Chairman of the
Commission on Audit for his appropriate action.
Section 379. Property Disposal. - When property of any local
government unit has become unserviceable for any cause or is no longer
needed, it shall upon application of the officer accountable therefor, be
inspected and appraised by the provincial, city or municipal auditor, as
the case may be, or his duly authorized representative or that of the
Commission on Audit and, if found valueless or unusable, shall be
destroyed in the presence of the inspecting officer.
If found valuable, the same shall be sold at public auction to the highest
bidder under the supervision of the committee on awards and in the
presence of the provincial, city or municipal auditor or his duly authorized
representative. Notice of the public auction shall be posted in at least
three (3) publicly accessible and conspicuous places, and if the
acquisition cost exceeds One hundred thousand pesos (P100,000.00)
in the case of provinces and cities, and Fifty thousand pesos
(P50,000.00) in the case of municipalities, notice of auction shall be
published at least two (2) times within a reasonable period in a
newspaper of general circulation in the locality.
Section 380. Negotiated Sale of Property. - Property no longer needed
may also be disposed of at a private sale at such price as may be
determined by the committee on awards, subject to the approval of the
Commission on Audit or its duly authorized representative when the
acquisition or transfer cost of the property exceeds Fifty thousand pesos
(P50,000.00) in the case of provinces and cities, and Twenty-five
thousand pesos (P25,000.00) in the case of municipalities and
barangays.
In case of real property, the disposal shall be subject to the approval of
the Commission on Audit regardless of the value or cost involved.
Section 381. Transfer Without Cost. - Property which has become
unserviceable or is no longer needed may be transferred without cost to
another office, agency, subdivision or instrumentality of the national
government or another local government unit at an appraised valuation
determined by the local committee on awards. Such transfer shall be
subject to the approval of the sanggunian concerned making the transfer
and by the head of the office, agency, subdivision, instrumentality or
local government unit receiving the property.
Section 382. Tax Exemption Privileges of Local Government Units. -
Local government units shall be exempt from the payment of duties and
taxes for the importation of heavy equipment or machineries which shall
be used for the construction, improvement, repair, and maintenance of
roads, bridges and other infrastructure projects, as well as garbage
trucks, fire trucks, and other similar equipment: Provided, however, That
such equipment or machineries shall not be disposed of, either by public
auction or negotiated sale as hereinabove provided, within five (5) years
from the importation thereof. In case the machinery or equipment is sold
within the five-year period, the purchasers or recipients shall be
considered the importers thereof, and shall be liable for duties and taxes
computed on the book value of such importation.
Section 383. Implementing Rules and Regulations. - The Chairman of
the Commission on Audit shall promulgate the rules and regulations
necessary to effectively implement the provisions of this Title, including
requirements as to testing, inspection, and standardization of supply and
property.
BOOK III
LOCAL GOVERNMENT UNITS
TITLE I
THE BARANGAY
CHAPTER I
Role and Creation of the Barangay
Section 384. Role of the Barangay. - As the basic political unit, the
barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects, and activities in the
community, and as a forum wherein the collective views of the people
may be expressed, crystallized and considered, and where disputes
may be amicably settled.
Section 385. Manner of Creation. - A barangay may be created, divided,
merged, abolished, or its boundary substantially altered, by law or by an
ordinance of the sangguniang panlalawigan or panlungsod, subject to
approval by a majority of the votes cast in a plebiscite to be conducted
by the COMELEC in the local government unit or units directly affected
within such period of time as may be determined by the law or ordinance
creating said barangay. In the case of the creation of barangays by the
sangguniang panlalawigan, the recommendation of the sangguniang
bayan concerned shall be necessary.
Section 386. Requisites for Creation. -
(a) A barangay may be created out of a contiguous territory which has a
population of at least two thousand (2,000) inhabitants as certified by the
National Statistics Office except in cities and municipalities within Metro
Manila and other metropolitan political subdivisions or in highly
urbanized cities where such territory shall have a certified population of
at least five thousand (5,000) inhabitants: Provided, That the creation
thereof shall not reduce the population of the original barangay or
barangays to less than the minimum requirement prescribed herein.
To enhance the delivery of basic services in the indigenous cultural
communities, barangays may be created in such communities by an Act
of Congress, notwithstanding the above requirement.
(b) The territorial jurisdiction of the new barangay shall be properly
identified by metes and bounds or by more or less permanent natural
boundaries. The territory need not be contiguous if it comprises two (2)
or more islands.
(c) The governor or city mayor may prepare a consolidation plan for
barangays, based on the criteria prescribed in this Section, within his
territorial jurisdiction. The plan shall be submitted to the sangguniang
panlalawigan or sangguniang panlungsod concerned for appropriate
action.
In the case of municipalities within the Metropolitan Manila Area and
other metropolitan political subdivisions, the barangay consolidation
plan shall be prepared and approved by the sangguniang bayan
concerned.
CHAPTER II
Barangay Officials and Offices
Section 387. Chief Officials and Offices. -
(a) There shall be in each barangay a punong barangay, seven (7)
sangguniang barangay members, the sangguniang kabataan chairman,
a barangay secretary, and a barangay treasurer.
(b) There shall also be in every barangay a lupong tagapamayapa. The
sangguniang barangay may form community brigades and create such
other positions or offices as may be deemed necessary to carry out the
purposes of the barangay government in accordance with the needs of
public service, subject to the budgetary limitations on personal services
prescribed under Title Five, Book II of this Code.
Section 388. Persons in Authority. - For purposes of the Revised Penal
Code, the punong barangay, sangguniang barangay members, and
members of the lupong tagapamayapa in each barangay shall be
deemed as persons in authority in their jurisdictions, while other
barangay officials and members who may be designated by law or
ordinance and charged with the maintenance of public order, protection
and security of life and property, or the maintenance of a desirable and
balanced environment, and any barangay member who comes to the aid
of persons in authority, shall be deemed agents of persons in authority.
CHAPTER III
The Punong Barangay
Section 389. Chief Executive: Powers, Duties, and Functions. -
(a) The punong barangay, as the chief executive of the barangay
government, shall exercise such powers and perform such duties and
functions, as provided by this Code and other laws.
(b) For efficient, effective and economical governance, the purpose of
which is the general welfare of the barangay and its inhabitants pursuant
to Section 16 of this Code, the punong barangay shall:
(1) Enforce all laws and ordinances which are applicable within the
barangay;
(2) Negotiate, enter into, and sign contracts for and in behalf of the
barangay, upon authorization of the sangguniang barangay;
(3 Maintain public order in the barangay and, in pursuance thereof,
assist the city or municipal mayor and the sanggunian members in the
performance of their duties and functions;
(4) Call and preside over the sessions of the sangguniang barangay and
the barangay assembly, and vote only to break a tie;
(5) Upon approval by a majority of all the members of the sangguniang
barangay, appoint or replace the barangay treasurer, the barangay
secretary, and other appointive barangay officials;
(6) Organize and lead an emergency group whenever the same may be
necessary for the maintenance of peace and order or on occasions of
emergency or calamity within the barangay;
(7) In coordination with the barangay development council, prepare the
annual executive and supplemental budgets of the barangay;
(8) Approve vouchers relating to the disbursement of barangay funds;
(9) Enforce laws and regulations relating to pollution control and
protection of the environment;
(10) Administer the operation of the katarungang pambarangay in
accordance with the provisions of this Code;
(11) Exercise general supervision over the activities of the sangguniang
kabataan;
(12) Ensure the delivery of basic services as mandated under Section
17 of this Code;
(13) Conduct an annual palarong barangay which shall feature
traditional sports and disciplines included in national and international
games, in coordination with the Department of Education, Culture and
Sports;
(14) Promote the general welfare of the barangay; and
(15) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) In the performance of his peace and order functions. the punong
barangay shall be entitled to possess and carry the necessary firearm
within his territorial jurisdiction, subject to appropriate rules and
regulations.
CHAPTER IV
The Sangguniang Barangay
Section 390. Composition. - The sangguniang barangay, the legislative
body of the barangay, shall be composed of the punong barangay as
presiding officer, and the seven (7) regular sangguniang barangay
members elected at large and sangguniang kabataan chairman, as
members.
Section 391. Powers, Duties, and Functions. -
(a) The sangguniang barangay, as the legislative body of the barangay,
shall:
(1) Enact ordinances as may be necessary to discharge the
responsibilities conferred upon it by law or ordinance and to promote the
general welfare of the inhabitants therein;
(2) Enact tax revenue ordinances, subject to the limitations imposed in
this Code;
(3) Enact annual and supplemental budgets in accordance with the
provisions of this Code;
(4) Provide for the construction and maintenance of barangay facilities
and other public works projects chargeable to the general fund of the
barangay or such other funds actually available for the purpose;
(5) Submit to the sangguniang panlungsod or sangguniang bayan such
suggestions or recommendations as it may see fit for the improvement
of the barangay or for the welfare of the inhabitants thereof;
(6) Assist in the establishment, organization, and promotion of
cooperative enterprises that will improve the economic condition and
well-being of the residents;
(7) Regulate the use of multi-purpose halls, multi-purpose pavements,
grain or copra dryers, patios and other post-harvest facilities, barangay
waterworks, barangay markets, parking areas or other similar facilities
constructed with government funds within the jurisdiction of the
barangay and charge reasonable fees for the use thereof;
(8) Solicit or accept monies, materials and voluntary labor for specific
public works and cooperative enterprises of the barangay from
residents, land owners, producers and merchants in the barangay;
monies from grants-in-aid, subsidies, contributions, and revenues made
available to the barangays from national, provincial, city or municipal
funds; and monies from other private agencies and individuals:
Provided, however, That monies or properties donated by private
agencies and individuals for specific purposes shall accrue to the
barangay as trust fund;
(9) Solicit or accept, in any or all the foregoing public works and
cooperative enterprises, such cooperation as is made available by
national, provincial, city, or municipal agencies established by law to
render financial, technical, and advisory assistance to barangays and to
barangay residents: Provided, however, That in soliciting or accepting
such cooperation, the sangguniang barangay need not pledge any sum
of money for expenditure in excess of amounts currently in the barangay
treasury or encumbered for other purposes;
(10) Provide compensation, reasonable allowances or per diems as well
as travel expenses for sangguniang barangay members and other
barangay officials, subject to the budgetary limitations prescribed under
Title Five, Book II of this Code: Provided, however, That no increase in
the compensation or honoraria of the sangguniang barangay members
shall take effect until after the expiration of the full term of all members
of the sangguniang barangay approving such increase;
(11) Hold fund-raising activities for barangay projects without the need
of securing permits from any national or local office or agency. The
proceeds from such activities shall be tax-exempt and shall accrue to
the general fund of the barangay: Provided, That in the appropriation
thereof, the specific purpose for which such fund-raising activity has
been held shall be first satisfied: Provided, further, That no fund-raising
activities shall be held within a period of sixty (60) days immediately
preceding and after a national or local election, recall, referendum, or
plebiscite: Provided, finally, That said fund-raising activities shall comply
with national policy standards and regulations on morals, health, and
safety of the persons participating therein. The sangguniang barangay,
through the punong barangay, shall render a public accounting of the
funds raised at the completion of the project for which the fund-raising
activity was undertaken;
(12) Authorize the punong barangay to enter into contracts in behalf of
the barangay, subject to the provisions of this Code;
(13) Authorize the barangay treasurer to make direct purchases in an
amount not exceeding One thousand pesos (P1,000.00) at any one time
for the ordinary and essential administrative needs of the barangay;
(14) Prescribe fines in amounts not exceeding One thousand pesos
(P1,000.00) for violation of barangay ordinances;
(15) Provide for the administrative needs of the lupong tagapamayapa
and the pangkat ng tagapagkasundo;
(16) Provide for the organization of community brigades, barangay
tanod, or community service units as may be necessary;
(17) Organize regular lectures, programs, or fora on community
problems such as sanitation, nutrition, literacy, and drug abuse, and
convene assemblies to encourage citizen participation in government;
(18) Adopt measures to prevent and control the proliferation of squatters
and mendicants in the barangay;
(19) Provide for the proper development and welfare of children in the
barangay by promoting and supporting activities for the protection and
total development of children, particularly those below seven (7) years
of age;
(20) Adopt measures towards the prevention and eradication of drug
abuse, child abuse, and juvenile delinquency;
(21) Initiate the establishment of a barangay high school, whenever
feasible, in accordance with law;
(22) Provide for the establishment of a non-formal education center in
the barangay whenever feasible, in coordination with the Department of
Education, Culture and Sports;
(23) Provide for the delivery of basic services; and
(24) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 392. Other Duties of Sangguniang Barangay Members. - In
addition to their duties as members of the sangguniang barangay,
sangguniang barangay members may:
(a) Assist the punong barangay in the discharge of his duties and
functions;
(b) Act as peace officers in the maintenance of public order and safety;
and
(c) Perform such other duties and functions as the punong barangay
may delegate.
Section 393. Benefits of Barangay Officials. -
(a) Barangay officials, including barangay tanods and members of the
lupong tagapamayapa, shall receive honoraria, allowances, and such
other emoluments as may be authorized by law or barangay, municipal
or city ordinance in accordance with the provisions of this Code, but in
no case shall it be less than One thousand pesos (P1,000.00) per month
for the punong barangay and Six hundred pesos (P600.00) per month
for the sangguniang barangay members, barangay treasurer, and
barangay secretary: Provided, however, That the annual appropriations
for personal services shall be subject to the budgetary limitations
prescribed under Title Five, Book II of this Code;
(b) The punong barangay, the sangguniang barangay members, the
barangay treasurer, and the barangay secretary shall also:
(1) Be entitled to Christmas bonus of at least One thousand pesos
(P1,000.00) each, the funds for which shall be taken from the general
fund of the barangay or from such other funds appropriated by the
national government for the purpose;
(2) Be entitled, during their incumbency, to insurance coverage which
shall include, but shall not be limited to temporary and permanent
disability, double indemnity, accident insurance, death and burial
benefits, in accordance with Republic Act Numbered Sixty-nine hundred
forty-two (R.A. No. 6942), entitled "An Act Increasing the Insurance
Benefits of Local Government Officials and Providing Funds Therefor";
(3) Be entitled to free medical care including subsistence, medicines,
and medical attendance in any government hospital or institution:
Provided, That such hospital care shall include surgery or surgical
expenses, medicines, X-rays, laboratory fees, and other hospital
expenses;
In case of extreme urgency where there is no available government
hospital or institution, the barangay official attendance to the nearest
private clinic, hospital or institution and the expenses not exceeding Five
thousand pesos (P5,000.00) that may be incurred therein shall be
chargeable against the funds of the barangay concerned;
(4) Be exempted during their incumbency from paying tuition and
matriculation fees for their legitimate dependent children attending state
colleges or universities. He may likewise avail of such educational
benefits in a state college or university located within the province or city
to which the barangay belongs; and
(5) Be entitled to appropriate civil service eligibility on the basis of the
number of years of service to the barangay, pursuant to the rules and
regulations issued by the Civil Service Commission.
(c) Elective barangay officials shall have preference in appointments to
any government position or in any government-owned or controlled
corporations, including their subsidiaries, after their tenure of office,
subject to the requisite qualifications and the provisions of the
immediately preceding paragraph.
(d) All duly appointed members of the barangay tanod brigades, or their
equivalent, which shall number not more than twenty (20) in each
barangay, shall be granted insurance or other benefits during their
incumbency, chargeable to the barangay or the city or municipal
government to which the barangay belongs.
CHAPTER V
Appointive Barangay Officials
Section 394. Barangay Secretary: Appointment, Qualifications, Powers
and Duties. -
(a) The barangay secretary shall be appointed by the punong barangay
with the concurrence of the majority of all the sangguniang barangay
members. The appointment of the barangay secretary shall not be
subject to attestation by the Civil Service Commission.
(b) The barangay secretary shall be of legal age, a qualified voter and
an actual resident of the barangay concerned.
(c) No person shall be appointed barangay secretary if he is a
sangguniang barangay member, a government employee, or a relative
of the punong barangay within the fourth civil degree of consanguinity of
affinity.
(d) The barangay secretary shall:
(1) Keep custody of all records of the sangguniang barangay and the
barangay assembly meetings;
(2) Prepare and keep the minutes of all meetings of the sangguniang
barangay and the barangay assembly;
(3) Prepare a list of members of the barangay assembly, and have the
same posted in conspicuous places within the barangay;
(4) Assist in the preparation of all necessary forms for the conduct of
barangay elections, initiatives, referenda or plebiscites, in coordination
with the COMELEC;
(5) Assist the municipal civil registrar in the registration of births, deaths,
and marriages;
(6) Keep an updated record of all inhabitants of the barangay containing
the following items of information: name, address, place and date of
birth, sex, civil status, citizenship, occupation, and such other items of
information as may be prescribed by law or ordinance;
(7) Submit a report on the actual number of barangay residents as often
as may be required by the sangguniang barangay; and
(8) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 395. Barangay Treasurer: Appointment, Qualification,
Powers and Duties. -
(a) The barangay treasurer shall be appointed by the punong barangay
with the concurrence of the majority of all the sangguniang barangay
members. The appointment of the barangay treasurer shall not be
subject to attestation by the Civil Service Commission.
(b) The barangay treasurer shall be of legal age, a qualified voter, and
an actual resident of the barangay concerned.
(c) No person shall be appointed barangay treasurer if he is a
sangguniang barangay member, a government employee, or a relative
of the punong barangay within the fourth civil degree of consanguinity or
affinity.
(d) The barangay treasurer shall be bonded in accordance with existing
laws in an amount to be determined by the sangguniang barangay but
not exceeding Ten thousand pesos (P10,000.00), premiums for which
shall be paid by the barangay.
(e) The barangay treasurer shall:
(1) Keep custody of barangay funds and properties;
(2) Collect and issue official receipts for taxes, fees, contributions,
monies, materials, and all other resources accruing to the barangay
treasury and deposit the same in the account of the barangay as
provided under Title Five, Book II of this Code;
(3) Disburse funds in accordance with the financial procedures provided
in this Code;
(4) Submit to the punong barangay a statement covering the actual and
estimates of income and expenditures for the preceding and ensuing
calendar years, respectively, subject to the provisions of Title Five, Book
II of this Code.
(5) Render a written accounting report of all barangay funds and property
under his custody at the end of each calendar year, and ensure that such
report shall be made available to the members of the barangay assembly
and other government agencies concerned;
(6) Certify as to the availability of funds whenever necessary;
(7) Plan and attend to the rural postal circuit within his jurisdiction; and
(8) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 396. Other Appointive Officials. - The qualifications, duties,
and functions of all other barangay officials appointed by the punong
barangay shall be governed by the provisions of this Code and other
laws or by barangay ordinances.
CHAPTER VI
Barangay Assembly
Section 397. Composition; Meetings. -
(a) There shall be a barangay assembly composed of all persons who
are actual residents of the barangay for at least six (6) months, fifteen
(15) years of age or over, citizens of the Philippines, and duly registered
in the list of barangay assembly members.
(b) The barangay assembly shall meet at least twice a year to hear and
discuss the semestral report of the sangguniang barangay concerning
its activities and finances as well as problems affecting the barangay. Its
meetings shall be held upon call of the punong barangay or of at least
four (4) members of the sangguniang barangay, or upon written petition
of at least five percent (5%) of the assembly members.
(c) No meeting of the barangay assembly shall take place unless a
written notice is given one (1) week prior to the meeting except on
matters involving public safety or security, in which case notice within a
reasonable time shall be sufficient. The punong barangay, or in his
absence, the sangguniang barangay member acting as punong
barangay, or any assembly member selected during the meeting, shall
act as presiding officer in all the meetings of the assembly. The barangay
secretary, or in his absence, any member designated by the presiding
officer to act as secretary, shall discharge the duties of secretary of the
barangay assembly.
Section 398. Powers of the Barangay Assembly. - The barangay
assembly shall:
(a) Initiate legislative processes by recommending to the sangguniang
barangay the adoption of measures for the welfare of the barangay and
the city or municipality concerned;
(b) Decide on the adoption of initiative as a legal process whereby the
registered voters of the barangay may directly propose, enact, or amend
any ordinance; and
(c) Hear and pass upon the semestral report of the sangguniang
barangay concerning its activities and finances.
CHAPTER VII
Katarungang Pambarangay
Section 399. Lupong Tagapamayapa. -
(a) There is hereby created in each barangay a lupong tagapamayapa,
hereinafter referred to as the lupon, composed of the punong barangay,
as chairman and ten (10) to twenty (20) members. The lupon shall be
constituted every three (3) years in the manner provided herein.
(b) Any person actually residing or working, in the barangay, not
otherwise expressly disqualified by law, and possessing integrity,
impartiality, independence of mind, sense of fairness, and reputation for
probity, may be appointed a member of the lupon.
(c) A notice to constitute the lupon, which shall include the names of
proposed members who have expressed their willingness to serve, shall
be prepared by the punong barangay within the first fifteen (15) days
from the start of his term of office. Such notice shall be posted in three
(3) conspicuous places in the barangay continuously for a period of not
less than three (3) weeks;
(d) The punong barangay, taking into consideration any opposition to the
proposed appointment or any recommendations for appointment as may
have been made within the period of posting, shall within ten (10) days
thereafter, appoint as members those whom he determines to be
suitable therefor. Appointments shall be in writing, signed by the punong
barangay, and attested to by the barangay secretary.
(e) The list of appointed members shall be posted in three (3)
conspicuous places in the barangay for the entire duration of their term
of office; and
(f) In barangays where majority of the inhabitants are members of
indigenous cultural communities, local systems of settling disputes
through their councils of datus or elders shall be recognized without
prejudice to the applicable provisions of this Code.
Section 400. Oath and Term of Office. - Upon appointment, each lupon
member shall take an oath of office before the punong barangay. He
shall hold office until a new lupon is constituted on the third year
following his appointment unless sooner terminated by resignation,
transfer of residence or place of work, or withdrawal of appointment by
the punong barangay with the concurrence of the majority of all the
members of the lupon.
Section 401. Vacancies. - Should a vacancy occur in the lupon for any
cause, the punong barangay shall immediately appoint a qualified
person who shall hold office only for the unexpired portion of the term.
Section 402. Functions of the Lupon. - The lupon shall:
(a) Exercise administrative supervision over the conciliation panels
provided herein;
(b) Meet regularly once a month to provide a forum for exchange of ideas
among its members and the public on matters relevant to the amicable
settlement of disputes, and to enable various conciliation panel
members to share with one another their observations and experiences
in effecting speedy resolution of disputes; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 403. Secretary of the Lupon. - The barangay secretary shall
concurrently serve as the secretary of the lupon. He shall record the
results of mediation proceedings before the punong barangay and shall
submit a report thereon to the proper city or municipal courts. He shall
also receive and keep the records of proceedings submitted to him by
the various conciliation panels.
Section 404. Pangkat ng Tagapagkasundo. -
(a) There shall be constituted for each dispute brought before the lupon
a conciliation panel to be known as the pangkat ng tagapagkasundo,
hereinafter referred to as the pangkat, consisting of three (3) members
who shall be chosen by the parties to the dispute from the list of
members of the lupon.
Should the parties fail to agree on the pangkat membership, the same
shall be determined by lots drawn by the lupon chairman.
(b) The three (3) members constituting the pangkat shall elect from
among themselves the chairman and the secretary. The secretary shall
prepare the minutes of the pangkat proceedings and submit a copy duly
attested to by the chairman to the lupon secretary and to the proper city
or municipal court. He shall issue and cause to be served notices to the
parties concerned.
The lupon secretary shall issue certified true copies of any public record
in his custody that is not by law otherwise declared confidential.
Section 405. Vacancies in the Pangkat. - Any vacancy in the pangkat
shall be chosen by the parties to the dispute from among the other lupon
members. Should the parties fail to agree on a common choice, the
vacancy shall be filled by lot to be drawn by the lupon chairman.
Section 406. Character of Office and Service of Lupon Members. -
(a) The lupon members, while in the performance of their official duties
or on the occasion thereof, shall be deemed as persons in authority, as
defined in the Revised Penal Code.
(b) The lupon or pangkat members shall serve without compensation,
except as provided for in Section 393 and without prejudice to incentives
as provided for in this Section and in Book IV of this Code. The
Department of the Interior and Local Government shall provide for a
system of granting economic or other incentives to the lupon or pangkat
members who adequately demonstrate the ability to judiciously and
expeditiously resolve cases referred to them. While in the performance
of their duties, the lupon or pangkat members, whether in public or
private employment, shall be deemed to be on official time, and shall not
suffer from any diminution in compensation or allowance from said
employment by reason thereof.
Section 407. Legal Advice on Matters Involving Questions of Law. - The
provincial, city legal officer or prosecutor or the municipal legal officer
shall render legal advice on matters involving questions of law to the
punong barangay or any lupon or pangkat member whenever necessary
in the exercise of his functions in the administration of the katarungang
pambarangay.
Section 408. Subject Matter for Amicable Settlement; Exception
Thereto. - The lupon of each barangay shall have authority to bring
together the parties actually residing in the same city or municipality for
amicable settlement of all disputes except:
(a) Where one party is the government, or any subdivision or
instrumentality thereof;
(b) Where one party is a public officer or employee, and the dispute
relates to the performance of his official functions;
(c) Offenses punishable by imprisonment exceeding one (1) year or a
fine exceeding Five thousand pesos (P5,000.00);
(d) Offenses where there is no private offended party;
(e) Where the dispute involves real properties located in different cities
or municipalities unless the parties thereto agree to submit their
differences to amicable settlement by an appropriate lupon;
(f) Disputes involving parties who actually reside in barangays of
different cities or municipalities, except where such barangay units
adjoin each other and the parties thereto agree to submit their
differences to amicable settlement by an appropriate lupon;
(g) Such other classes of disputes which the President may determine
in the interest of Justice or upon the recommendation of the Secretary
of Justice.
The court in which non-criminal cases not falling within the authority of
the lupon under this Code are filed may, at any time before trial motu
propio refer the case to the lupon concerned for amicable settlement.
Section 409. Venue. -
(a) Disputes between persons actually residing in the same barangay
shall be brought for amicable settlement before the lupon of said
barangay.
(b) Those involving actual residents of different barangays within the
same city or municipality shall be brought in the barangay where the
respondent or any of the respondents actually resides, at the election of
the complaint.
(c) All disputes involving real property or any interest therein shall be
brought in the barangay where the real property or the larger portion
thereof is situated.
(d) Those arising at the workplace where the contending parties are
employed or at the institution where such parties are enrolled for study,
shall be brought in the barangay where such workplace or institution is
located.
Objections to venue shall be raised in the mediation proceedings before
the punong barangay; otherwise, the same shall be deemed waived. Any
legal question which may confront the punong barangay in resolving
objections to venue herein referred to may be submitted to the Secretary
of Justice, or his duly designated representative, whose ruling thereon
shall be binding.
Section 410. Procedure for Amicable Settlement. -
(a) Who may initiate proceeding - Upon payment of the appropriate filing
fee, any individual who has a cause of action against another individual
involving any matter within the authority of the lupon may complain,
orally or in writing, to the lupon chairman of the barangay.
(b) Mediation by lupon chairman - Upon receipt of the complaint, the
lupon chairman shall within the next working day summon the
respondent(s), with notice to the complainant(s) for them and their
witnesses to appear before him for a mediation of their conflicting
interests. If he fails in his mediation effort within fifteen (15) days from
the first meeting of the parties before him, he shall forthwith set a date
for the constitution of the pangkat in accordance with the provisions of
this Chapter.
(c) Suspension of prescriptive period of offenses - While the dispute is
under mediation, conciliation, or arbitration, the prescriptive periods for
offenses and cause of action under existing laws shall be interrupted
upon filing the complaint with the punong barangay. The prescriptive
periods shall resume upon receipt by the complainant of the complainant
or the certificate of repudiation or of the certification to file action issued
by the lupon or pangkat secretary: Provided, however, That such
interruption shall not exceed sixty (60) days from the filing of the
complaint with the punong barangay.
(d) Issuance of summons; hearing; grounds for disqualification - The
pangkat shall convene not later than three (3) days from its constitution,
on the day and hour set by the lupon chairman, to hear both parties and
their witnesses, simplify issues, and explore all possibilities for amicable
settlement. For this purpose, the pangkat may issue summons for the
personal appearance of parties and witnesses before it. In the event that
a party moves to disqualify any member of the pangkat by reason of
relationship, bias, interest, or any other similar grounds discovered after
the constitution of the pangkat, the matter shall be resolved by the
affirmative vote of the majority of the pangkat whose decision shall be
final. Should disqualification be decided upon, the resulting vacancy
shall be filled as herein provided for.
(e) Period to arrive at a settlement - The pangkat shall arrive at a
settlement or resolution of the dispute within fifteen (15) days from the
day it convenes in accordance with this section. This period shall, at the
discretion of the pangkat, be extendible for another period which shall
not exceed fifteen (15) days, except in clearly meritorious cases.
Section 411. Form of settlement. - All amicable settlements shall be in
writing, in a language or dialect known to the parties, signed by them,
and attested to by the lupon chairman or the pangkat chairman, as the
case may be. When the parties to the dispute do not use the same
language or dialect, the settlement shall be written in the language
known to them.
Section 412. Conciliation. -
(a) Pre-condition to Filing of Complaint in Court. - No complaint, petition,
action, or proceeding involving any matter within the authority of the
lupon shall be filed or instituted directly in court or any other government
office for adjudication, unless there has been a confrontation between
the parties before the lupon chairman or the pangkat, and that no
conciliation or settlement has been reached as certified by the lupon
secretary or pangkat secretary as attested to by the lupon or pangkat
chairman or unless the settlement has been repudiated by the parties
thereto.
(b) Where Parties May Go Directly to Court. - The parties may go directly
to court in the following instances:
(1) Where the accused is under detention;
(2) Where a person has otherwise been deprived of personal liberty
calling for habeas corpus proceedings;
(3) Where actions are coupled with provisional remedies such as
preliminary injunction, attachment, delivery of personal property and
support pendente lite; and
(4) Where the action may otherwise be barred by the statute of
limitations.
(c) Conciliation among members of indigenous cultural communities. -
The customs and traditions of indigenous cultural communities shall be
applied in settling disputes between members of the cultural
communities.
Section 413. Arbitration. -
(a) The parties may, at any stage of the proceedings, agree in writing
that they shall abide by the arbitration award of the lupon chairman or
the pangkat. Such agreement to arbitrate may be repudiated within five
(5) days from the date thereof for the same grounds and in accordance
with the procedure hereinafter prescribed. The arbitration award shall be
made after the lapse of the period for repudiation and within ten (10)
days thereafter.
(b) The arbitration award shall be in writing in a language or dialect
known to the parties. When the parties to the dispute do not use the
same language or dialect, the award shall be written in the language or
dialect known to them.
Section 414. Proceedings Open to the Public; Exception. - All
proceedings for settlement shall be public and informal: Provided,
however, That the lupon chairman or the pangkat chairman, as the case
may be, may motu proprio or upon request of a party, exclude the public
from the proceedings in the interest of privacy, decency, or public
morals.
Section 415. Appearance of Parties in Person. - In all katarungang
pambarangay proceedings, the parties must appear in person without
the assistance of counsel or representative, except for minors and
incompetents who may be assisted by their next-of-kin who are not
lawyers.
Section 416. Effect of Amicable Settlement and Arbitration Award. - The
amicable settlement and arbitration award shall have the force and effect
of a final judgment of a court upon the expiration of ten (10) days from
the date thereof, unless repudiation of the settlement has been made or
a petition to nullify the award has been filed before the proper city or
municipal court.
However, this provision shall not apply to court cases settled by the
lupon under the last paragraph of Section 408 of this Code, in which
case the compromise or the pangkat chairman shall be submitted to the
court and upon approval thereof, have the force and effect of a judgment
of said court.
Section 417. Execution. - The amicable settlement or arbitration award
may be enforced by execution by the lupon within six (6) months from
the date of the settlement. After the lapse of such time, the settlement
may be enforced by action in the appropriate city or municipal court.
Section 418. Repudiation. - Any party to the dispute may, within ten (10)
days from the date of the settlement, repudiate the same by filing with
the lupon chairman a statement to that effect sworn to before him, where
the consent is vitiated by fraud, violence, or intimidation. Such
repudiation shall be sufficient basis for the issuance of the certification
for filing a complaint as hereinabove provided.
Section 419. Transmittal of Settlement and Arbitration. - Award to the
Court. - The secretary of the lupon shall transmit the settlement or the
arbitration award to the appropriate city or municipal court within five (5)
days from the date of the award or from the lapse of the ten-day period
repudiating the settlement and shall furnish copies thereof to each of the
parties to the settlement and the lupon chairman.
Section 420. Power to Administer Oaths. - The punong barangay, as
chairman of the lupong tagapamayapa, and the members of the pangkat
are hereby authorized to administer oaths in connection with any matter
relating to all proceedings in the implementation of the katarungang
pambarangay.
Section 421. Administration; Rules and Regulations. - The city or
municipal mayor, as the case may be, shall see to the efficient and
effective implementation and administration of the katarungang
pambarangay. The Secretary of Justice shall promulgate the rules and
regulations necessary to implement this Chapter.
Section 422. Appropriations. - Such amount as may be necessary for
the effective implementation of the katarungang pambarangay shall be
provided for in the annual budget of the city or municipality concerned.
CHAPTER VIII
Sangguniang Kabataan
Section 423. Creation and Election. -
(a) There shall be in every barangay a sangguniang kabataan to be
composed of a chairman, seven (7) members, a secretary, and a
treasurer.
(b) A sangguniang kabataan official who, during his term of office, shall
have passed the age of twenty-one (21) years shall be allowed to serve
the remaining portion of the term for which he was elected.
Section 424. Katipunan ng Kabataan. - The katipunan ng kabataan shall
be composed of all citizens of the Philippines actually residing in the
barangay for at least six (6) months, who are fifteen (15) but not more
than twenty-one (21) years of age, and who are duly registered in the list
of the sangguniang kabataan or in the official barangay list in the custody
of the barangay secretary.
Section 425. Meetings of the Katipunan ng Kabataan. - The katipunan
ng kabataan shall meet at least once every three (3) months, or at the
call of the chairman of the sangguniang kabataan or upon written petition
of at least one-twentieth (1/20) of its members, to decide on important
issues affecting the youth of the barangay.
Section 426. Powers and Functions of the Sangguniang Kabataan. - The
sangguniang kabataan shall:
(a) Promulgate resolutions necessary to carry out the objectives of the
youth in the barangay in accordance with the applicable provisions of
this Code;
(b) Initiate programs designed to enhance the social, political, economic,
cultural, intellectual, moral, spiritual, and physical development of the
members;
(c) Hold fund-raising activities, the proceeds of which shall be tax-
exempt and shall accrue to the general fund of the sangguniang
kabataan: Provided, however, That in the appropriation thereof, the
specific purpose for which such activity has been held shall be first
satisfied;
(d) Create such bodies or committees as it may deem necessary to
effectively carry out its programs and activities;
(e) Submit annual and end-of-term reports to the sangguniang barangay
on their projects and activities for the survival and development of the
youth in the barangay;
(f) Consult and coordinate with all youth organizations in the barangay
for policy formulation and program implementation;
(g) Coordinate with the appropriate national agency for the
implementation of youth development projects and programs at the
national level;
(h) Exercise such other powers and perform such other duties and
functions as the sangguniang barangay may determine or delegate; and
(i) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 427. Meetings of the Sangguniang Kabataan. - The
sangguniang kabataan shall meet regularly once a month on the date,
time, and place to be fixed by the said sanggunian. Special meetings
may be called by the sangguniang kabataan chairman or any three (3)
of its members by giving written notice to all members of the date, time,
place and agenda of the meeting at least one (1) day in advance. Notices
of regular or special meetings shall be furnished the punong barangay
and the sangguniang barangay.
A majority of the members of the sangguniang kabataan shall constitute
a quorum.
Section 428. Qualifications. - An elective official of the sangguniang
kabataan must be a citizen of the Philippines, a qualified voter of the
katipunan ng kabataan, a resident of the barangay for at least one (1)
year immediately prior to election, at least fifteen (15) years but not more
than twenty- one (21) years of age on the day of his election, able to
read and write Filipino, English, or the local dialect, and must not have
been convicted of any crime involving moral turpitude.
Section 429. Term of Office. - The sangguniang kabataan chairman and
members shall hold office for a period of three (3) years, unless sooner
removed for cause as provided by law, permanently incapacitated, die
or resign from office.
Section 430. Sangguniang Kabataan Chairman. - The registered voters
of the katipunan ng kabataan shall elect the chairman of the
sangguniang kabataan who shall automatically serve as an ex officio
member of the sangguniang barangay upon his assumption to office. As
such, he shall exercise the same powers, discharge the same duties and
functions, and enjoy the same privileges as the regular sangguniang
barangay members, and shall be the chairman of the committee on
youth and sports development in the said sanggunian.
Section 431. Powers and Duties of the Sangguniang Kabataan
Chairman. - In addition to the duties which may be assigned to him by
the sangguniang barangay, the sangguniang kabataan chairman shall:
(a) Call and preside over all meetings of the katipunan ng kabataan and
the sangguniang kabataan;
(b) Implement policies, programs, and projects within his jurisdiction in
coordination with the sangguniang barangay;
(c) Exercise general supervision over the affairs and activities of the
sangguniang kabataan and the official conduct of its members, and such
other officers of the sangguniang kabataan within his jurisdiction;
(d) With the concurrence of the sangguniang kabataan, appoint from
among the members of the sangguniang kabataan, the secretary and
treasurer and such other officers as may be deemed necessary; and
(e) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 432. Sangguniang Kabataan Secretary. - The sangguniang
kabataan secretary shall:
(a) Keep all records of the katipunan ng kabataan and sangguniang
kabataan;
(b) Prepare and keep the minutes of all meetings of the katipunan ng
kabataan and sangguniang kabataan;
(c) Prepare all forms necessary for the conduct of registrations,
elections, initiatives, referenda, or plebiscites, in coordination with the
barangay secretary and the COMELEC; and
(d) Perform such other duties and discharge such other functions as the
chairman of the sangguniang kabataan may prescribe or direct.
Section 433. Sangguniang Kabataan Treasurer. - The sangguniang
kabataan treasurer shall:
(a) Take custody of all sangguniang kabataan property and funds not
otherwise deposited with the city or municipal treasurer;
(b) Collect and receive contributions, monies, materials, and all other
sources intended for the sangguniang kabataan and katipunan ng
kabataan;
(c) Disburse funds in accordance with an approved budget of the
sangguniang kabataan;
(d) Certify to the availability of funds whenever necessary;
(e) Submit to the sangguniang kabataan and to the sangguniang
barangay certified and detailed statements of actual income and
expenditures at the end of every month; and
(f) Perform such other duties and discharge such other functions as the
chairman of the sangguniang kabataan may direct.
Section 434. Privileges of Sangguniang Kabataan Officials. - The
sangguniang kabataan chairman shall have the same privileges enjoyed
by other sangguniang barangay officials under this Code subject to such
requirements and limitations provided herein. During their incumbency,
sangguniang kabataan officials shall be exempt from payment of tuition
and matriculation fees while enrolled in public tertiary schools, including
state colleges and universities. The national government shall reimburse
said college or university the amount of the tuition and matriculation fees:
Provided, That, to qualify for the privilege, the said officials shall enroll
in a state college or university within or nearest their area of jurisdiction.
Section 435. Succession and Filling of Vacancies. -
(a) In case a sangguniang kabataan chairman refuses to assume office,
fails to qualify, is convicted of a felony, voluntarily resigns, dies, is
permanently incapacitated, is removed from office, or has been absent
without leave for more than three (3) consecutive months, the
sangguniang kabataan member who obtained the next highest number
of votes in the election immediately preceding shall assume the office of
the chairman for the unexpired portion of the term, and shall discharge
the powers and duties, and enjoy the rights and privileges appurtenant
to the office. In case the said member refuses to assume the position or
fails to qualify, the sangguniang member obtaining the next highest
number of votes shall assume the position of the chairman for the
unexpired portion of the term.
(b) Where two (2) or more sangguniang kabataan members obtained the
same next highest number of votes, the other sangguniang kabataan
members shall conduct an election to choose the successor to the
chairman from among the said members.
(c) After the vacancy shall have been filled, the sangguniang kabataan
chairman shall call a special election to complete the membership of said
sanggunian. Such sangguniang kabataan member shall hold office for
the unexpired portion of the term of the vacant seat.
(d) In case of suspension of the sangguniang kabataan chairman, the
successor, as determined in subsections (a) and (b) of this Section shall
assume the position during the period of such suspension.
CHAPTER IX
Pederasyon ng mga Sangguniang Kabataan
Section 436. Pederasyon ng mga Kabataan. -
(a) There shall be an organization of all the pederasyon ng mga
sangguniang kabataan to be known as follows:
(1) in municipalities pambayang pederasyon ng mga sangguniang
kabataan;
(2) in cities, panlungsod na pederasyon ng mga sangguniang kabataan;
(3) in provinces, panlalawigang pederasyon ng mga kabataan;
(4) in special metropolitan political subdivisions, pangmetropolitan
pederasyon ng mga sangguniang kabataan; and
(5) on the national level pambansang pederasyon ng mga sangguniang
kabataan.
(b) The pederasyon ng mga sangguniang kabataan shall, at all levels,
elect from among themselves the president, vice- president and such
other officers as may be necessary and shall be organized in the
following manner:
(1) The panlungsod and pambayang pederasyon shall be composed of
the sangguniang kabataan chairmen of barangays in the city or
municipality, respectively;
(2) The panlalawigang pederasyon shall be composed of presidents of
the panlungsod and pambayang pederasyon;
(3) The pangmetropolitang pederasyon shall be composed of presidents
of the panlungsod and pambayan pederasyon;
(c) The elected presidents of the pederasyon at the provincial, highly
urbanized city, and metropolitan political subdivision levels shall
constitute the pambansang katipunan ng mga sangguniang kabataan.
Section 437. Constitution and By-Laws. - The term of office, manner of
election, removal and suspension of the officers of the pederasyon ng
mga sangguniang kabataan at all levels shall be governed by the
constitution and by-laws of the pederasyon in conformity with the
provisions of this Code and national policies on youth.
Section 438. Membership in the Sanggunian. -
(a) A sangguniang kabataan chairman shall, upon certification of his
election by the COMELEC and during his tenure of office is elected as
pederasyon president, serve as an ex-officio member of the
sangguniang panlalawigan, sangguniang panlungsod, and sangguniang
bayan, as the case may be, without need of further appointment.
(b) The vice-president of the pederasyon whose president has been
elected as president of a higher pederasyon shall serve as ex-officio
member of the sanggunian concerned without need of further
appointment.
(c) The pederasyon president or vice-president, as the case may be,
shall be the chairman of the committee on youth and sports development
of the sanggunian concerned.
CHAPTER X
Linggo ng Kabataan
Section 439. Observance of Linggo ng Kabataan. -
(a) Every barangay, municipality, city and province shall, in coordination
with the pederasyon ng mga sangguniang kabataan at all levels, conduct
an annual activity to be known as the Linggo ng Kabataan on such date
as shall be determined by the Office of the President.
(b) The observance of the Linggo ng Kabataan shall include the election
of the counterparts of all local elective and appointive officials, as well
as heads of national offices or agencies stationed or assigned in the
territorial jurisdiction of the local government unit, among in-school and
community youth residing in the local government unit concerned from
ages thirteen (13) to seventeen (17). During said week, they shall hold
office as boy and girl officials and shall perform such duties and conduct
such activities as may be provided in the ordinance enacted pursuant to
this Chapter.
TITLE II
THE MUNICIPALITY
CHAPTER I
Role and Creation of the Municipality
Section 440. Role of the Municipality. - The municipality, consisting of a
group of barangays, serves primarily as a general purpose government
for the coordination and delivery of basic, regular and direct services and
effective governance of the inhabitants within its territorial jurisdiction.
Section 441. Manner of Creation. - A municipality may be created,
divided, merged, abolished, or its boundary substantially altered only by
an Act of Congress and subject to the approval by a majority of the votes
cast in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. Except as may otherwise be
provided in the said Act, the plebiscite shall be held within one hundred
twenty (120) days from the date of its effectivity.
Section 442. Requisites for Creation. -
(a) A municipality may be created if it has an average annual income, as
certified by the provincial treasurer, of at least Two million five hundred
thousand pesos (P2,500,000.00) for the last two (2) consecutive years
based on the 1991 constant prices; a population of at least twenty-five
thousand (25,000) inhabitants as certified by the National Statistics
Office; and a contiguous territory of at least fifty (50) square kilometers
as certified by the Lands Management Bureau: Provided, That the
creation thereof shall not reduce the land area, population or income of
the original municipality or municipalities at the time of said creation to
less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created municipality shall be
properly identified by metes and bounds. The requirement on land area
shall not apply where the municipality proposed to be created is
composed of one (1) or more islands. The territory need not be
contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the
general fund of the municipality concerned, exclusive of special funds,
transfers and non-recurring income.
(d) Municipalities existing as of the date of the effectivity of this Code
shall continue to exist and operate as such. Existing municipal districts
organized pursuant to presidential issuances or executive orders and
which have their respective set of elective municipal officials holding
office at the time of the effectivity of this Code shall henceforth be
considered as regular municipalities.
CHAPTER II
Municipal Officials in General
Section 443. Officials of the Municipal Government. -
(a) There shall be in each municipality a municipal mayor, a municipal
vice-mayor, sangguniang bayan members, a secretary to the
sangguniang bayan, a municipal treasurer, a municipal assessor, a
municipal accountant, a municipal budget officer, a municipal planning
and development coordinator, a municipal engineer/building official, a
municipal health officer and a municipal civil registrar.
(b) In addition thereto, the mayor may appoint a municipal administrator,
a municipal legal officer, a municipal agriculturist, a municipal
environment and natural resources officer, a municipal social welfare
and development officer, a municipal architect, and a municipal
information officer.
(c) The sangguniang bayan may:
(1) Maintain existing offices not mentioned in subsections (a) and (b)
hereof;
(2) Create such other offices as may be necessary to carry out the
purposes of the municipal government; or
(3) Consolidate the functions of any office with those of another in the
interest of efficiency and economy.
(d) Unless otherwise provided herein, heads of departments and offices
shall be appointed by the municipal mayor with the concurrence of the
majority of all the sangguniang bayan members, subject to civil service
law, rules and regulations. The sangguniang bayan shall act on the
appointment within fifteen (15) days from the date of its submission;
otherwise, the same shall be deemed confirmed.
(e) Elective and appointive municipal officials shall receive such
compensation, allowances and other emoluments as may be
determined by law or ordinance, subject to the budgetary limitations on
personal services as prescribed in Title Five, Book Two of this Code:
Provided, That no increase in compensation of the mayor, vice-mayor,
and sangguniang bayan members shall take effect until after the
expiration of the full term of all the elective local officials approving such
increase.
CHAPTER III
Officials and Offices Common to All Municipalities
ARTICLE I
The Municipal Mayor
Section 444. The Chief Executive: Powers, Duties, Functions and
Compensation. -
(a) The municipal mayor, as the chief executive of the municipal
government, shall exercise such powers and performs such duties and
functions as provided by this Code and other laws.
(b) For efficient, effective and economical governance the purpose of
which is the general welfare of the municipality and its inhabitants
pursuant to Section 16 of this Code, the municipal mayor shall:
(1) Exercise general supervision and control over all programs, projects,
services, and activities of the municipal government, and in this
connection, shall:
(i) Determine the guidelines of municipal policies and be responsible to
the sangguniang bayan for the program of government;
(ii) Direct the formulation of the municipal development plan, with the
assistance of the municipal development council, and upon approval
thereof by the sangguniang bayan, implement the same;
(iii) At the opening of the regular session of the sangguniang bayan for
every calendar year and, as may be deemed necessary, present the
program of government and propose policies and projects for the
consideration of the sangguniang bayan as the general welfare of the
inhabitants and the needs of the municipal government may require;
(iv) Initiate and propose legislative measures to the sangguniang bayan
and, from time to time as the situation may require, provide such
information and data needed or requested by said sanggunian in the
performance of its legislative functions;
(v) Appoint all officials and employees whose salaries and wages are
wholly or mainly paid out of municipal funds and whose appointments
are not otherwise provided for in this Code, as well as those he may be
authorized by law to appoint;
(vi) Upon authorization by the sangguniang bayan, represent the
municipality in all its business transactions and sign on its behalf all
bonds, contracts, and obligations, and such other documents made
pursuant to law or ordinance;
(vii) Carry out such emergency measures as may be necessary during
and in the aftermath of man-made and natural disasters and calamities;
(viii) Determine, according to law or ordinance, the time, manner and
place of payment of salaries or wages of the officials and employees of
the municipality;
(ix) Allocate and assign office space to municipal and other officials and
employees who, by law or ordinance, are entitled to such space in the
municipal hall and other buildings owned or leased by the municipal
government;
(x) Ensure that all executive officials and employees of the municipality
faithfully discharge their duties and functions as provided by law and this
Code, and cause to be instituted administrative or judicial proceedings
against any official or employee of the municipality who may have
committed as offense in the performance of his official duties;
(xi) Examine the books, records and other documents of all offices,
officials, agents or employees of the municipality and in aid of his
executive powers and authority, require all national officials and
employees stationed in or assigned to the municipality to make available
to him such books, records, and other documents in their custody,
except those classified by law as confidential;
(xii) Furnish copies of executive orders issued by him to the provincial
governor within seventy-two (72) hours after their issuance: Provided,
That municipalities of Metropolitan Manila Area and that of any
metropolitan political subdivision shall furnish copies of said executive
orders to the metropolitan authority council chairman and to the Office
of the President;
(xiii) Visit component barangays of the municipality at least once every
six (6) months to deepen his understanding of problems and conditions
therein, listen and give appropriate counsel to local officials and
inhabitants, inform the component barangay officials and inhabitants of
general laws and ordinances which especially concern them, and
otherwise conduct visits and inspections to the end that the governance
of the municipality will improve the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and employees appointed by
him and the commutation of the monetary value of leave credits
according to law;
(xv) Authorize official trips outside of the municipality of municipal
officials and employees for a period not exceeding thirty (30) days;
(xvi) Call upon any national official or employee stationed in or assigned
to the municipality to advise him on matters affecting the municipality
and to make recommendations thereon, or to coordinate in the
formulation and implementation of plans, programs and projects, and
when appropriate, initiate an administrative or judicial action against a
national government official or employee who may have committed an
offense in the performance of his official duties while stationed in or
assigned to the local government unit concerned;
(xvii) Subject to availability of funds, authorize payment of medical care,
necessary transportation, subsistence, hospital or medical fees of
municipal officials and employees who are injured while in the
performance of their official duties and functions;
(xviii) Solemnize marriages, any provision of law to the contrary
notwithstanding;
(xix) Conduct a palarong bayan, in coordination with the Department of
Education, Culture and Sports, as an annual activity which shall feature
traditional sports and disciplines included in national and international
games; and
(xx) Submit to the provincial governor the following reports: an annual
report containing a summary of all matters pertaining to the
management, administration and development of the municipality and
all information and data relative to its political, social and economic
conditions; and supplemental reports when unexpected events and
situations arise at any time during the year, particularly when man-made
or natural disasters or calamities affect the general welfare of the
municipality, province, region or country. mayors of municipalities of the
Metropolitan Manila Area and other metropolitan political subdivisions
shall submit said reports to their respective metropolitan council
chairmen and to the Office of the President;
(2) Enforce all laws and ordinances relative to the governance of the
municipality and the exercise of its corporate powers provided for under
Section 22 of this Code implement all approved policies, programs,
projects, services and activities of the municipality and, in addition to the
foregoing, shall:
(i) Ensure that the acts of the municipality's component barangays and
of its officials and employees are within the scope of their prescribed
powers, functions, duties and responsibilities;
(ii) Call conventions, conferences, seminars or meetings of any elective
and appointive officials of the municipality, including provincial officials
and national officials and employees stationed in or assigned to the
municipality at such time and place and on such subject as he may deem
important for the promotion of the general welfare of the local
government unit and its inhabitants;
(iii) Issue such executive orders as are necessary for the proper
enforcement and execution of laws and ordinances;
(iv) Be entitled to carry the necessary firearm within his territorial
jurisdiction;
(v) Act as the deputized representative of the National Police
Commission, formulate the peace and order plan of the municipality and
upon its approval implement the same and exercise general and
operational control and supervision over the local police in the
municipality in accordance with R.A. No 6975;
(vi) Call upon the appropriate law enforcement agencies to suppress
disorder, riot, lawless violence, rebellion or sedition or to apprehend
violators of the law when public interest so requires and the municipal
police forces are inadequate to cope with the situation or the violators;
(3) Initiate and maximize the generation of resources and revenues, and
apply the same to the implementation of development plans, program
objectives and priorities as provided for under Section 18 of this Code,
particularly those resources and revenues programmed for gro-industrial
development and country-wide growth and progress, and relative
thereto, shall:
(i) Require each head of an office or department to prepare and submit
an estimate of appropriations for the ensuing calendar year, in
accordance with the budget preparation process under Title Five, Book
II of this Code;
(ii) Prepare and submit to the sanggunian for approval the executive and
supplemental budgets of the municipality for the ensuing calendar year
in the manner provided for under Title Five, Book II of this Code;
(iii) Ensure that all taxes and other revenues of the municipality are
collected and that municipal funds are applied in accordance with law or
ordinance to the payment of expenses and settlement of obligations of
the municipality;
(iv) Issue licenses and permits and suspend or revoke the same for any
violation of the conditions upon which said licenses or permits had been
issued, pursuant to law or ordinance;
(v) Issue permits, without need of approval therefor from any national
agency, for the holding of activities for any charitable or welfare purpose,
excluding prohibited games of chance or shows contrary to law, public
policy and public morals;
(vi) Require owners of illegally constructed houses, buildings or other
structures to obtain the necessary permit, subject to such fines and
penalties as may be imposed by law or ordinance, or to make necessary
changes in the construction of the same when said construction violates
any law or ordinance, or to order the demolition or removal of said house,
building or structure within the period prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and conserve land, mineral,
marine, forest, and other resources of the municipality; provide efficient
and effective property and supply management in the municipality; and
protect the funds, credits, rights and other properties of the municipality;
and
(viii) Institute or cause to be instituted administrative or judicial
proceedings for violation of ordinances in the collection of taxes, fees or
charges, and for the recovery of funds and property; and cause the
municipality to be defended against all suits to ensure that its interests,
resources and rights shall be adequately protected;
(4) Ensure the delivery of basic services and the provision of adequate
facilities as provided for under Section 17 of this Code and, in addition
thereto, shall:
(i) Ensure that the construction and repair of roads and highways funded
by the national government shall be, as far as practicable, carried out in
a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the municipality and the province;
and
(ii) Coordinate the implementation of technical services rendered by
national and provincial offices, including public works and infrastructure
programs in the municipality; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(c) During his incumbency, the municipal mayor shall hold office in the
municipal hall.
(d) The municipal mayor shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-seven (27) as prescribed under
R.A. No. 6758 and the implementing guidelines issued pursuant thereto.
ARTICLE II
The Vice Mayor
Section 445. Powers, Duties and Compensation. -
(a) The vice-mayor shall:
(1) Be the presiding officer of the sangguniang bayan and sign all
warrants drawn on the municipal treasury for all expenditures
appropriated for the operation of the sangguniang bayan;
(2) Subject to civil service law, rules and regulations, appoint all officials
and employees of the sangguniang bayan, except those whose manner
of appointment is specifically provided in this Code;
(3) Assume the office of the municipal mayor for the unexpired term of
the latter in the event of permanent vacancy as provided for in Section
44, Book I of this Code;
(4) Exercise the powers and perform the duties and functions of the
municipal mayor in cases of temporary vacancy as provided for in
Section 46, Book I of this Code; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The vice-mayor shall receive a monthly compensation corresponding
to Salary Grade twenty five (25) as prescribed under R.A. No. 6758 and
the implementing guidelines issued pursuant thereto.
ARTICLE III
The Sangguniang Bayan
Section 446. Composition. -
(a) The sangguniang bayan, the legislative body of the municipality, shall
be composed of the municipal vice mayor as the presiding officer, the
regular sanggunian members, the president of the municipal chapter of
the liga ng mga barangay, the president of the pambayang pederasyon
ng mga sangguniang kabataan, and the sectoral representatives, as
members.
(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of local elections,
one (1) from the agricultural or industrial workers, and one (1) from other
sectors, including the urban poor, indigenous cultural communities, or
disabled persons.
(c) The regular members of the sangguniang bayan and the sectoral
representatives shall be elected in the manner as may be provided for
by law.
Section 447. Powers, Duties, Functions and Compensation. -
(a) The sangguniang bayan, as the legislative body of the municipality,
shall enact ordinances, approve resolutions and appropriate funds for
the general welfare of the municipality and its inhabitants pursuant to
Section 16 of this Code and in the proper exercise of the corporate
powers of the municipality as provided for under Section 22 of this Code,
and shall:
(1) Approve ordinances and pass resolutions necessary for an efficient
and effective municipal government, and in this connection shall:
(i) Review all ordinances approved by the sangguniang barangay and
executive orders issued by the punong barangay to determine whether
these are within the scope of the prescribed powers of the sanggunian
and of the punong barangay;
(ii) Maintain peace and order by enacting measures to prevent and
suppress lawlessness, disorder, riot, violence, rebellion or sedition and
impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing a fine not exceeding Two thousand
five hundred pesos (P2,500.00) or an imprisonment for a period not
exceeding six (6) months, or both in the discretion of the court, for the
violation of a municipal ordinance;
(iv) Adopt measures to protect the inhabitants of the municipality from
the harmful effects of man-made or natural disasters and calamities and
to provide relief services and assistance for victims during and in the
aftermath of said disasters or calamities and their return to productive
livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose
appropriate penalties for habitual drunkenness in public places,
vagrancy, mendicancy, prostitution, establishment and maintenance of
houses of ill repute, gambling and other prohibited games of chance,
fraudulent devices and ways to obtain money or property, drug addiction,
maintenance of drug dens, drug pushing, juvenile delinquency, the
printing, distribution or exhibition of obscene or pornographic materials
or publications, and such other activities inimical to the welfare and
morals of the inhabitants of the municipality;
(vi) Protect the environment and impose appropriate penalties for acts
which endanger the environment, such as dynamite fishing and other
forms of destructive fishing, illegal logging and smuggling of logs,
smuggling of natural resources products and of endangered species of
flora and fauna, slash and burn farming, and such other activities which
result in pollution, acceleration of eutrophication of rivers and lakes, or
of ecological imbalance;
(vii) Subject to the provisions of this Code and pertinent laws, determine
the powers and duties of officials and employees of the municipality;
(viii) Determine the positions and salaries, wages, allowances and other
emoluments and benefits of officials and employees paid wholly or
mainly from municipal funds and provide for expenditures necessary for
the proper conduct of programs. projects, services, and activities of the
municipal government;
(ix) Authorize the payment of compensation to a qualified person not in
the government service who fills up a temporary vacancy or grant
honorarium to any qualified official or employee designated to fill a
temporary vacancy in a concurrent capacity, at the rate authorized by
law;
(x) Provide a mechanism and the appropriate funds therefor, to ensure
the safety and protection of all municipal government property, public
documents, or records such as those relating to property inventory, land
ownership, records of births, marriages, deaths, assessments, taxation,
accounts, business permits, and such other records and documents of
public interest in the offices and departments of the municipal
government;
(xi) When the finances of the municipal government allow, provide for
additional allowances and other benefits to judges, prosecutors, public
elementary and high school teachers, and other national government
officials stationed in or assigned to the municipality;
(xii) Provide for legal assistance to barangay officials who, in the
performance of their official duties or on the occasion thereof, have to
initiate judicial proceedings or defend themselves against legal action;
and
(xii) Provide for group insurance or additional insurance coverage for
barangay officials, including members of barangay tanod brigades and
other service units, with public or private insurance companies, when the
finances of the municipal government allow said coverage.
(2) Generate and maximize the use of resources and revenues for the
development plans, program objectives and priorities of the municipality
as provided for under Section 18 of this Code with particular attention to
agro-industrial development and countryside growth and progress, and
relative thereto, shall:
(i) Approve the annual and supplemental budgets of the municipal
government and appropriate funds for specific programs, projects,
services and activities of the municipality, or for other purposes not
contrary to law, in order to promote the general welfare of the
municipality and its inhabitants;
(ii) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang bayan,
enact ordinances levying taxes, fees and charges, prescribing the rates
thereof for general and specific purposes, and granting tax exemptions,
incentives or reliefs;
(iii) Subject to the provisions of Book II of this Code and upon the majority
vote of all the members of the sangguniang bayan, authorize the
municipal mayor to negotiate and contract loans and other forms of
indebtedness;
(iv) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang bayan,
enact ordinances authorizing the floating of bonds or other instruments
of indebtedness, for the purpose of raising funds to finance development
projects;
(v) Appropriate funds for the construction and maintenance or the rental
of buildings for the use of the municipality and, upon the majority vote of
all the members of the sangguniang bayan, authorize the municipal
mayor to lease to private parties such public buildings held in a
proprietary capacity, subject to existing laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on the use of property
within the jurisdiction of the municipality:
(vii) Adopt a comprehensive land use plan for the municipality: Provided,
That the formulation, adoption, or modification of said plan shall be in
coordination with the approved provincial comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the municipality, subject to
the pertinent provisions of this Code;
(ix) Enact integrated zoning ordinances in consonance with the
approved comprehensive land use plan, subject to existing laws, rules
and regulations; established fire limits or zones, particularly in populous
centers; and regulate the construction, repair or modification of buildings
within said fire limits or zones in accordance with the provisions of this
Code;
(x) Subject to national law, process and approve subdivision plans for
residential, commercial, or industrial purposes and other development
purposes, and collect processing fees and other charges the proceeds
of which shall accrue entirely to the municipality: Provided, however,
That, where approval by a national agency or office is required, said
approval shall not be withheld for more than thirty (30) days from receipt
of the application. Failure to act on the application within the period
stated above shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of this Code, grant the exclusive
privilege of constructing fish corrals or fish pens, or the taking or catching
of bangus fry, prawn fry or kawag-kawag of fry of any species or fish
within the municipal waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members
of the sangguniang bayan, grant tax exemptions, incentives or reliefs to
entities engaged in community growth-inducing industries, subject to the
provisions of Chapter 5, Title I, Book II of this Code.
(xiii) Grant loans or provide grants to other local government units or to
national, provincial and municipal charitable, benevolent or educational
institutions: Provided, That said institutions are operated and maintained
within the municipality;
(xiv) Regulate the numbering of residential, commercial and other
buildings; and
(xv) Regulate the inspection, weighing and measuring of articles of
commerce.
(3) Subject to the provisions of Book II of this Code, grant franchises,
enact ordinances authorizing the issuance of permits or licenses, or
enact ordinances levying taxes, fees and charges upon such conditions
and for such purposes intended to promote the general welfare of the
inhabitants of the municipality, and pursuant to this legislative authority
shall:
(i) Fix and impose reasonable fees and charges for all services rendered
by the municipal government to private persons or entities;
(ii) Regulate any business, occupation, or practice of profession or
calling which does not require government examination within the
municipality and the conditions under which the license for said business
or practice of profession may be issued or revoked;
(iii) Prescribe the terms and conditions under which public utilities owned
by the municipality shall be operated by the municipal government or
leased to private persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards,
or billboards at the place or places where the profession or business
advertised thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the
establishment, operation, and maintenance of cockpits, and regulate
cockfighting and commercial breeding of gamecocks: Provided, That
existing rights should not be prejudiced;
(vi) Subject to the guidelines prescribed by the Department of
Transportation and Communications, regulate the operation of tricycles
and grant franchises for the operation thereof within the territorial
jurisdiction of the municipality;
(vii) Upon approval by a majority vote of all the members of the
sangguniang bayan, grant a franchise to any person, partnership,
corporation, or cooperative to establish, construct, operate and maintain
ferries, wharves, markets or slaughterhouses, or such other similar
activities within the municipality as may be allowed by applicable laws:
Provided, That, cooperatives shall be given preference in the grant of
such a franchise.
(4) Regulate activities relative to the use of land, buildings and structures
within the municipality in order to promote the general welfare and for
said purpose shall:
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof and any land within
the municipality be kept and maintained in a sanitary condition; impose
penalties for any violation thereof, or upon failure to comply with said
requirement, have the work done and require the owner, administrator
or tenant concerned to pay the expenses of the same; or require the
filling up of any land or premises to a grade necessary for proper
sanitation;
(iii) Regulate the disposal of clinical and other wastes from hospitals,
clinics and other similar establishments;
(iv) Regulate the establishment, operation and maintenance of cafes,
restaurants, beerhouses, hotels, motels, inns, pension houses, lodging
houses, and other similar establishments, including tourist guides and
transports;
(v) Regulate the sale, giving away or dispensing of any intoxicating malt,
vino, mixed or fermented liquors at any retail outlet;
(vi) Regulate the establishment and provide for the inspection of steam
boilers or any heating device in buildings and the storage of inflammable
and highly combustible materials within the municipality;
(vii) Regulate the establishment, operation, and maintenance of
entertainment or amusement facilities, including theatrical
performances, circuses, billiards pools, public dancing schools, public
dance halls, sauna baths, massage parlors, and other places of
entertainment or amusement; regulate such other events or activities for
amusement or entertainment, particularly those which tend to disturb the
community or annoy the inhabitants, or require the suspension or
suppression of the same; or, prohibit certain forms of amusement or
entertainment in order to protect the social and moral welfare of the
community;
(viii) Provide for the impounding of stray animals; regulate the keeping
of animals in homes or as part of a business, and the slaughter, sale or
disposition of the same; and adopt measures to prevent and penalize
cruelty to animals; and
(ix) Regulate the establishment, operation, and maintenance of funeral
parlors and the burial or cremation of the dead, subject to existing laws,
rules and regulations.
(5) Approve ordinances which shall ensure the efficient and effective
delivery of the basic services and facilities as provided for under Section
17 of this Code, and in addition to said services and facilities, shall:
(i) Provide for the establishment, maintenance, protection, and
conservation of communal forests and watersheds, tree parks,
greenbelts, mangroves, and other similar forest development projects;
(ii) Establish markets, slaughterhouses or animal corrals and authorize
the operation thereof, and regulate the construction and operation of
private markets, talipapas or other similar buildings and structures;
(iii) Authorize the establishment, maintenance and operation of ferries,
wharves, and other structures, and marine and seashore or offshore
activities intended to accelerate productivity;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables,
fruits, fresh dairy products, and other foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges,
parks and other public places and approve the construction,
improvement, repair and maintenance of the same; establish bus and
vehicle stops and terminals or regulate the use of the same by privately-
owned vehicles which serve the public; regulate garages and the
operation of conveyances for hire; designate stands to be occupied by
public vehicles when not in use; regulate the putting up of signs,
signposts, awnings and awning posts on the streets; provide for the
lighting, cleaning and sprinkling of streets and public places;
(vi) Regulate traffic on all streets and bridges, prohibit the putting up of
encroachments or obstacles thereon, and, when necessary in the
interest of public welfare, authorize the removal of encroachments and
illegal constructions in public places;
(vii) Subject to existing laws, provide for the establishment, operation,
maintenance, and repair of an efficient waterworks system to supply
water for the inhabitants; regulate the construction, maintenance, repair
and use of hydrants, pumps, cisterns and reservoirs; protect the purity
and quantity of the water supply of the municipality and, for this purpose,
extend the coverage of appropriate ordinances over all territory within
the drainage area of said water supply and within one hundred (100)
meters of the reservoir, conduit, canal, aqueduct, pumping station, or
watershed used in connection with the water service; and regulate the
consumption, use or wastage of water;
(viii) Regulate the drilling and excavation of the ground for laying of
water, gas, sewer, and other pipes and the construction, repair and
maintenance of public drains, sewers, cesspools, tunnels and similar
structures; regulate the placing of poles and the use of crosswalks,
curbs, and gutters; adopt measures to ensure public safety against open
canals, manholes, live wires and other similar hazards to life and
property; and regulate the construction and use of private water closets,
privies and other similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and
construction of all gas mains, electric, telegraph and telephone wires,
conduits, meters and other apparatus; and, provide for the correction,
condemnation or removal of the same when found to be dangerous,
defective or otherwise hazardous to the welfare of the inhabitants;
(x) Subject to the availability of funds and to existing laws, rules and
regulations, establish and provide for the operation of vocational and
technical schools and similar post-secondary institutions and, with the
approval of the Department of Education. Culture and Sports, fix and
collect reasonable fees and other school charges on said institutions,
subject to existing laws on tuition fees;
(xi) Establish a scholarship fund for poor but deserving students residing
within the municipality in schools located within its jurisdiction;
(xii) Approve measures and adopt quarantine regulations to prevent the
introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and
garbage collection disposal and prohibit littering and the placing or
throwing of garbage, refuse and other filth and wastes;
(xiv) Provide for the care of paupers, the aged, the sick, persons of
unsound mind, disabled persons, abandoned minors, juvenile
delinquents, drug dependents, abused children and other needy and
disadvantaged persons, particularly children and youth below eighteen
(18) years of age and, subject to availability of funds, establish and
provide for the operation of centers and facilities for said needy and
disadvantaged persons;
(xv) Establish and provide for the maintenance and improvement of jails
and detention centers, institute sound jail management programs, and
appropriate funds for the subsistence of detainees and convicted
prisoners in the municipality;
(xv) Establish a municipal council whose purpose is the promotion of
culture and the arts, coordinate with government agencies and non-
governmental organizations and, subject to the availability of funds,
appropriate funds for the support and development of the same; and
(xvi) Establish a municipal council for the orderly which shall formulate
policies and adopt measures mutually beneficial to the elderly and to the
community; provide incentives for non-governmental agencies and
entities and, subject to the availability of funds, appropriate funds to
support programs and projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The members of the sangguniang bayan shall receive a minimum
monthly compensation corresponding to Salary Grade twenty-four (24)
as prescribed under R.A. No. 6758 and the implementing guidelines
issued pursuant thereto: Provided, That, in municipalities in Metropolitan
Manila Area and other metropolitan political subdivisions, members of
the sangguniang bayan shall receive a minimum monthly compensation
corresponding to Salary grade twenty-five (25).
TITLE III
THE CITY
CHAPTER I
Role and Creation of the City
Section 448. Role of the City. - The city, consisting of more urbanized
and developed barangays. serves as a general purpose government for
the coordination and delivery of basic, regular, and direct services and
effective governance of the inhabitants within its territorial jurisdiction.
Section 449. Manner of Creation. - A city may be created, divided,
merged, abolished, or its boundary substantially altered, only by an Act
of Congress, and subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the COMELEC in the local government
unit or units directly affected. Except as may otherwise be provided in
such Act. the plebiscite shall be held within one hundred twenty (120)
days from the date of its effectivity.
Section 450. Requisites for Creation.
(a) A municipality or a cluster of barangays may be converted into a
component city if it has an average annual income, as certified by the
Department of Finance, of at least Twenty million (P20,000,000.00) for
the last two (2) consecutive years based on 1991 constant prices, and if
it has either of the following requisites:
(i) a contiguous territory of at least one hundred (100) square kilometers,
as certified by the Lands Management Bureau; or
(ii) a population of not less than one hundred fifty thousand (150,000)
inhabitants, as certified by the National Statistics Office:
Provided, That, the creation thereof shall not reduce the land area,
population, and income of the original unit or units at the time of said
creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be properly
identified by metes and bounds. The requirement on land area shall not
apply where the city proposed to be created is composed of one (1) or
more islands. The territory need not be contiguous if it comprises two (2)
or more islands.
(c) The average annual income shall include the income accruing to the
general fund, exclusive of specific funds, transfers, and non-recurring
income.
Section 451. Cities, Classified. - A city may either be component or
highly urbanized: Provided, however, That the criteria established in this
Code shall not affect the classification and corporate status of existing
cities.
component cities whose charters prohibit their voters from voting for
provincial elective officials. Independent component cities shall be
independent of the province. Independent component cities are those
Section 452. Highly Urbanized Cities.
(a) Cities with a minimum population of two hundred thousand (200,000)
inhabitants as certified by the National Statistics Office, and within the
latest annual income of at least Fifty Million Pesos (P50,000,000.00)
based on 1991 constant prices, as certified by the city treasurer, shall
be classified as highly urbanized cities.
(b) Cities which do not meet above requirements shall be considered
component cities of the province in which they are geographically
located. If a component city is located within the boundaries of two (2)
or more provinces, such city shall be considered a component of the
province of which it used to be a municipality.
(c) Qualified voters of highly urbanized cities shall remain excluded from
voting for elective provincial officials.
Unless otherwise provided in the Constitution or this Code, qualified
voters of independent component cities shall be governed by their
respective charters, as amended, on the participation of voters in
provincial elections.
Qualified voters of cities who acquired the right to vote for elective
provincial officials prior to the classification of said cities as highly-
urbanized after the ratification of the Constitution and before the
effectivity of this Code, shall continue to exercise such right.
Section 453. Duty to Declare Highly Urbanized Status. - It shall be the
duty of the President to declare a city as highly urbanized within thirty
(30) days after it shall have met the minimum requirements prescribed
in the immediately preceding section, upon proper application therefor
and ratification in a plebiscite by the qualified voters therein.
CHAPTER II
City Officials in General
Section 454. Officials of the City Government.
(a) There shall be in each city a mayor, a vice-mayor, sangguniang
panlungsod members, a secretary to the sangguniang panlungsod, a
city treasurer, a city assessor, a city accountant, a city budget officer, a
city planning and development coordinator, a city engineer, a city health
officer, a city civil registrar, a city administrator, a city legal officer, a city
veterinarian, a city social welfare and development officer, and a city
general services officer.
(b) In addition thereto, the city mayor may appoint a city architect, a city
information officer, a city agriculturist, a city population officer, a city
environment and natural resources officer, and a city cooperatives
officer.
The appointment of a city population officer shall be optional in the city:
Provided, however, That cities which have existing population offices
shall continue to maintain such offices for a period of five (5) years from
the date of the effectivity of this Code, after which said offices shall
become optional.
(c) The sangguniang panlungsod may:
(1) Maintain existing offices not mentioned in subsections (a) and (b)
hereof;
(2) Create such other offices as may be necessary to carry out the
purposes of the city government; or
(3) Consolidate the functions of any office with those of another in the
interest of efficiency and economy.
(d) Unless otherwise provided herein, heads of departments and offices
shall be appointed by the city mayor with the concurrence of the majority
of all the sangguniang panlungsod members, subject to civil service law,
rules and regulations. The sangguniang panlungsod shall act on the
appointment within fifteen (15) days from the date of its submission,
otherwise the same shall be deemed confirmed.
(e) Elective and appointive city officials shall receive such
compensation, allowances, and other emoluments as may be
determined by law or ordinance, subject to the budgetary limitations on
personal services prescribed under Title Five, Book II of this Code:
Provided, That, no increase in compensation of the mayor, vice-mayor
and sangguniang panlungsod members shall take effect until after the
expiration of the full term of the said local officials approving such
increase.
CHAPTER III
Officials and Offices Common to All Cities
ARTICLE I
The City Mayor
Section 455. Chief Executive; Powers, Duties and Compensation.
(a) The city mayor, as chief executive of the city government, shall
exercise such powers and perform such duties and functions as
provided by this Code and other laws.
(b) For efficient, effective and economical governance the purpose of
which is the general welfare of the city and its inhabitants pursuant to
Section 16 of this Code, the city mayor shall:
(1) Exercise general supervision and control over all programs, projects,
services, and activities of the city government. and in this connection,
shall:
(i) Determine the guidelines of city policies and be responsible to the
sangguniang panlungsod for the program of government;
(ii) Direct the formulation of the city development plan, with the
assistance of the city development council, and upon approval thereof
by the sangguniang panlungsod, implement the same;
(iii) Present the program of government and propose policies and
projects for the consideration of the sangguniang panlungsod at the
opening of the regular session of the sangguniang panlungsod every
calendar year and as often as may be deemed necessary as the general
welfare of the inhabitants and the needs of the city government may
require;
(iv) Initiate and propose legislative measures to the sangguniang
panlungsod and as often as may be deemed necessary, provide such
information and data needed or requested by said sanggunian in the
performance of its legislative functions;
(v) Appoint all officials and employees whose salaries and wages are
wholly or mainly paid out of city funds and whose appointments are not
otherwise provided for in this Code, as well as those he may be
authorized by law to appoint;
(vi) Represent the city in all its business transactions and sign in its
behalf all bonds, contracts, and obligations, and such other documents
upon authority of the sangguniang panlungsod or pursuant to law or
ordinance;
(vii) Carry out such emergency measures as may be necessary during
and in the aftermath of man-made and natural disasters and calamities;
(viii) Determine the time, manner and place of payment of salaries or
wages of the officials and employees of the city, in accordance with law
or ordinance;
(ix) Allocate and assign office space to city and other officials and
employees who, by law or ordinance, are entitled to such space in the
city hall and other buildings owned or leased by the city government;
(x) Ensure that all executive officials and employees of the city faithfully
discharge their duties and functions as provided by law and this Code,
and cause to be instituted administrative or judicial proceedings against
any official or employee of the city who may have committed an offense
in the performance of his official duties;
(xi) Examine the books, records and other documents of all offices,
officials, agents or employees of the city and, in aid of his executive
powers and authority, require all national officials and employees
stationed in or assigned to the city to make available to him such books,
records, and other documents in their custody, except those classified
by law as confidential;
(xii) Furnish copies of executive orders issued by him, to the provincial
governor in the case of component city mayors, to the Office of the
President in the case of highly-urbanized city mayors and to their
respective metropolitan council chairmen in the case of mayors of cities
in the Metropolitan Manila Area and other metropolitan political
subdivisions, within seventy-two (72) hours after their issuances;
(xiii) Visit component barangays of the city at least once every six (6)
months to deepen his understanding of problems and conditions, listen
and give appropriate counsel to, local officials and inhabitants, inform
the component barangay officials and inhabitants of general laws and
ordinances which especially concern them, and otherwise conduct visits
and inspections to ensure that the governance of the city will improve
the quality of life of the inhabitants;
(xiv) Act on leave applications of officials and employees appointed by
him and the commutation of the monetary value of their leave credits in
accordance with law;
(xv) Authorize official trips of city officials and employees outside of the
city for a period not exceeding thirty (30) days;
(xvi) Call upon any national official or employee stationed in or assigned
to the city to advise him on matters affecting the city and to make
recommendations thereon; coordinate with said official or employee in
the formulation and implementation of plans, programs and projects;
and, when appropriate, initiate an administrative or judicial action
against a national government official or employee who may have
committed an offense in the performance of his official duties while
stationed in or assigned to the city;
(xvii) Authorize payment for medical care, necessary transportation,
subsistence, hospital or medical fees of city officials and employees who
are injured while in the performance of their duties and functions, subject
to availability of funds;
(xviii) Solemnize marriage, any provision of law to the contrary
notwithstanding;
(xix) Conduct an annual palarong panlungsod, which shall feature
traditional sports and disciplines included in national and international
games, in coordination with the Department of Education, Culture and
Sports; and
(xx) Submit to the provincial governor, in case of component cities; to
the Office of the President, in the case of highly-urbanized cities; to their
respective metropolitan authority council chairmen and to the Office of
the President, in case of cities of the Metropolitan Manila Area and other
metropolitan political subdivisions, the following reports: an annual
report containing a summary of all matters pertinent to the management,
administration and development of the city and all information and data
relative to its political, social and economic conditions; and supplemental
reports when unexpected events and situations arise at any time during
the year, particularly when man-made or natural disasters or calamities
affect the general welfare of the city, province, region or country;
(2) Enforce all laws and ordinances relative to the governance of the city
and in the exercise of the appropriate corporate powers provided for
under Section 22 of this Code, implement all approved policies,
programs, projects, services and activities of the city and, in addition to
the foregoing, shall:
(i) Ensure that the acts of the city's component barangays and of its
officials and employees are within the scope of their prescribed powers,
duties and functions;
(ii) Call conventions, conferences, seminars, or meetings of any elective
and appointive officials of the city, including provincial officials and
national officials and employees stationed in or assigned to the city, at
such time and place and on such subject as he may deem important for
the promotion of the general welfare of the local government unit and its
inhabitants;
(ii) Issue such executive orders for the faithful and appropriate
enforcement and execution of laws and ordinances;
(v) Be entitled to carry the necessary firearm within his territorial
jurisdiction;
(v) Act as the deputized representative of the National Police
Commission, formulate the peace and order plan of the city and upon its
approval, implement the same; and as such exercise general and
operational control and supervision over the local police forces in the
city, in accordance with R.A. No. 6975;
(vi) Call upon the appropriate law enforcement agencies to suppress
disorder, riot, lawless violence, rebellion or sedition, or to apprehend
violators of the law when public interest so requires and the city police
forces are inadequate to cope with the situations or the violators;
(3) Initiate and maximize the generation of resources and revenues, and
apply the same to the implementation of development plans, program
objectives and priorities as provided for under Section 18 of this Code,
particularly those resources and revenues programmed for agro-
industrial development and countryside growth and progress and,
relative thereto, shall:
(i) Require each head of an office or department to prepare and submit
an estimate of appropriations for the ensuing calendar year, in
accordance with the budget preparations process under Title Five, Book
II of this Code;
(ii) Prepare and submit to the sanggunian for approval the executive and
supplemental budgets of the city for the ensuing calendar year in the
manner provided for under Title Five, Book II of this Code;
(iii) Ensure that all taxes and other revenues of the city are collected,
and that city funds are applied to the payment of expenses and
settlement of obligations of the city, in accordance with law or ordinance;
(iv) Issue licenses and permits and suspend or revoke the same for any
violation of the conditions upon which said licenses or permits had been
issued, pursuant to law or ordinance;
(v) Issue permits, without need of approval therefor from any national
agency, for the holding of activities for any charitable or welfare purpose,
excluding prohibited games of chance or shows contrary to law, public
policy and public morals;
(vi) Require owners of illegally constructed houses, buildings or other
structures to obtain the necessary permit, subject to such fines and
penalties as may be imposed by law or ordinance, or to make necessary
changes in the construction of the same when said construction violates
any law or ordinance, or to order the demolition or removal of said house,
building or structure within the period prescribed by law or ordinance;
(vii) Adopt adequate measures to safeguard and conserve land, mineral,
marine, forest, and other resources of the city; provide efficient and
effective property and supply management in the city; and protect the
funds, credits, rights and other properties of the city; and
(viii) Institute or cause to be instituted administrative or judicial
proceedings for violation of ordinances in the collection of taxes, fees or
charges, and for the recovery of funds and property; and cause the city
to be defended against all suits to ensure that its interests, resources
and rights shall be adequately protected;
(4) Ensure the delivery of basic services and the provision of adequate
facilities as provided for under Section 17 of this Code and, in addition
thereto, shall:
(i) Ensure that the construction and repair of roads and highways funded
by the national government shall be, as far as practicable, carried out in
a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the city, and in the case of
component cities, of the city and of the province; and
(ii) Coordinate the implementation of technical services, including public
works and infrastructure programs, rendered by national offices in the
case of highly urbanized and independent component cities, and by
national and provincial offices in the case of component cities; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(c) During his incumbency, the city mayor shall hold office in the city hall.
(d) The city mayor shall receive a minimum monthly compensation
corresponding to Salary Grade Thirty (30) as prescribed under R.A. No.
6758 and the implementing guidelines issued pursuant thereto.
ARTICLE II
The City Vice-Mayor
Section 456. Powers, Duties and Compensation.
(a) The city vice-mayor shall:
(1) Be the presiding officer of the sangguniang panlungsod and sign all
warrants drawn on the city treasury for all expenditures appropriated for
the operation of the sangguniang panlungsod;
(2) Subject to civil service law, rules and regulations, appoint all officials
and employees of the sangguniang panlungsod, except those whose
manner of appointment is specifically provided in this Code;
(3) Assume the office of the city mayor for the unexpired term of the latter
in the event of permanent vacancy as provided for in Section 44, Book I
of this Code;
(4) Exercise the powers and perform the duties and functions of the city
mayor in cases of temporary vacancy as provided for in Section 46, Book
I of this Code; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The city vice-mayor shall receive a monthly compensation
corresponding to Salary Grade twenty eight (28) for a highly urbanized
city and Salary Grade twenty-six (26) for a component city, as prescribed
under R.A. No. 6758 and the implementing guidelines issued pursuant
thereto.
ARTICLE III
The Sangguniang Panlungsod
Section 457. Composition
(a) The sangguniang panlungsod, the legislative body of the city, shall
be composed of the city vice-mayor as presiding officer, the regular
sanggunian members, the president of the city chapter of the liga ng
mga barangay, the president of the panlungsod na pederasyon ng mga
sangguniang kabataan, and the sectoral representatives, as members.
(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of the local
elections, one (1) from agricultural or industrial workers; and one (1) from
the other sectors, including the urban poor, indigenous cultural
communities, or disabled persons.
(c) The regular members of the sangguniang panlungsod and the
sectoral representatives shall be elected in the manner as may be
provided for by law.
Section 458. Powers, Duties, Functions and Compensation.
(a) The sangguniang panlungsod, as the legislative body of the city, shall
enact ordinances, approve resolutions and appropriate funds for the
general welfare of the city and its inhabitants pursuant to Section 16 of
this Code and in the proper exercise of the corporate powers of the city
as provided for under Section 22 of this Code, and shall:
(1) Approve ordinances and pass resolutions necessary for an efficient
and effective city government, and in this connection, shall:
(i) Review all ordinances approved by the sangguniang barangay and
executive orders issued by the punong barangay to determine whether
these are within the scope of the prescribed powers of the sanggunian
and of the punong barangay;
(ii) Maintain peace and order by enacting measures to prevent and
suppress lawlessness, disorder, riot, violence, rebellion or sedition and
impose penalties for violation of said ordinances;
(iii) Approve ordinances imposing a fine not exceeding Five thousand
pesos (P5,000.00) or an imprisonment for a period not exceeding one
(1) year, or both in the discretion of the court, for the violation of a city
ordinance;
(iv) Adopt measures to protect the inhabitants of the city from the harmful
effects of man-made or natural disasters and calamities, and to provide
relief services and assistance for victims during and in the aftermath of
said disasters or calamities and their return to productive livelihood
following said events;
(v) Enact ordinances intended to prevent, suppress and impose
appropriate penalties for habitual drunkenness in public places,
vagrancy, mendicancy, prostitution, establishment and maintenance of
houses of ill repute, gambling and other prohibited games of chance,
fraudulent devices and ways to obtain money or property, drug addiction,
maintenance of drug dens, drug pushing, juvenile delinquency, the
printing, distribution or exhibition of obscene or pornographic materials
or publications, and such other activities inimical to the welfare and
morals of the inhabitants of the city.
(vi) Protect the environment and impose appropriate penalties for acts
which endanger the environment, such as dynamite fishing and other
forms of destructive fishing, illegal logging and smuggling of logs,
smuggling of natural resources products and of endangered species of
flora and fauna, slash and burn farming, and such other activities which
result in pollution, acceleration of eutrophication of rivers and lakes, or
of ecological imbalance;
(vii) Subject to the provisions of this Code and pertinent laws, determine
the powers and duties of officials and employees of the city;
(viii) Determine the positions and the salaries, wages, allowances and
other emoluments and benefits of officials and employees paid wholly or
mainly from city funds and provide for expenditures necessary for the
proper conduct of programs, projects, services, and activities of the city
government;
(ix) Authorize the payment of compensation to a qualified person not in
the government service who fills up a temporary vacancy or grant
honorarium to any qualified official or employee designated to fill a
temporary vacancy in a concurrent capacity, at the rate authorized by
law;
(x) Provide a mechanism and the appropriate funds therefor, to ensure
the safety and protection of all city government property, public
documents, or records such as those relating to property inventory, land
ownership, records of births, marriages, deaths, assessments, taxation,
accounts, business permits, and such other records and documents of
public interest in the offices and departments of the city government;
(xi) When the finances of the city government allow, provide for
additional allowances and other benefits to judges, prosecutors, public
elementary and high school teachers, and other national government
officials stationed in or assigned to the city;
(xii) Provide legal assistance to barangay officials who, in the
performance of their official duties or on the occasion thereof, have to
initiate judicial proceedings or defend themselves against legal action;
and
(xiii) Provide for group insurance or additional insurance coverage for all
barangay officials, including members of barangay tanod brigades and
other service units, with public or private insurance companies, when the
finances of the city government allow said coverage;
(2) Generate and maximize the use of resources and revenues for the
development plans, program objectives and priorities of the city as
provided for under Section 18 of this Code, with particular attention to
agro-industrial development and city-wide growth and progress, and
relative thereto, shall:
(i) Approve the annual and supplemental budgets of the city government
and appropriate funds for specific programs, projects, services and
activities of the city, or for other purposes not contrary to law, in order to
promote the general welfare of the city and its inhabitants;
(ii) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang
panlungsod, enact ordinances levying taxes, fees and charges,
prescribing the rates thereof for general and specific purposes, and
granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of this Code and upon the majority
vote of all the members of the sangguniang panlungsod, authorize the
city mayor to negotiate and contract loans and other forms of
indebtedness;
(iv) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang
panlungsod, enact ordinances authorizing the floating of bonds or other
instruments of indebtedness, for the purpose of raising funds to finance
development projects;
(v) Appropriate funds for the construction and maintenance or the rental
of buildings for the use of the city; and, upon the majority vote of all the
members of the sangguniang panlungsod, authorize the city mayor to
lease to private parties such public buildings held in a proprietary
capacity, subject to existing laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on the use of property
within the jurisdiction of the city;
(vii) Adopt a comprehensive land use plan for the city: Provided, That in
the case of component cities, the formulation, adoption or modification
of said plan shall be in coordination with the approved provincial
comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the city, subject to the
pertinent provisions of this Code;
(ix) Enact integrated zoning ordinances in consonance with the
approved comprehensive land use plan, subject to existing laws, rules
and regulations; establish fire limits or zones, particularly in populous
centers; and regulate the construction, repair or modification of buildings
within said fire limits or zones in accordance with the provisions of the
Fire Code;
(x) Subject to national law, process and approve subdivision plans for
residential, commercial, or industrial purposes and other development
purposes, and to collect processing fees and other charges, the
proceeds of which shall accrue entirely to the city: Provided, however,
That where approval of a national agency or office is required, said
approval shall not be withheld for more than thirty (30) days from receipt
of the application. Failure to act on the application within the period
stated above shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of this Code, grant the exclusive
privilege of constructing fish corrals or fish pens, or the taking or catching
of bangus fry, prawn fry or kawag-kawag, or fry of any species or fish
within the city waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members
of the sangguniang panlungsod, grant tax exemptions, incentives or
reliefs to entities engaged in community growth-inducing industries,
subject to the provisions of Chapter 5, Title I, Book II of this Code;
(xiii) Grant loans or provide grants to other local government units or to
national, provincial, and city charitable, benevolent or educational
institutions: Provided, That, said institutions are operated and
maintained within the city;
(xiv) Regulate the numbering of residential, commercial and other
buildings; and
(xv) Regulate the inspection, weighing and measuring of articles of
commerce.
(3) Subject to the provisions of Book II of this Code, enact ordinances
granting franchises and authorizing the issuance of permits or licenses,
upon such conditions and for such purposes intended to promote the
general welfare of the inhabitants of the city and pursuant to this
legislative authority shall:
(i) Fix and impose reasonable fees and charges for all services rendered
by the city government to private persons or entities;
(ii) Regulate or fix license fees for any business or practice of profession
within the city and the conditions under which the license for said
business or practice of profession may be revoked and enact ordinances
levying taxes thereon;
(iii) Provide for and set the terms and conditions under which public
utilities owned by the city shall be operated by the city government, and
prescribe the conditions under which the same may be leased to private
persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards,
or billboards at the place or places where the profession or business
advertised thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the
establishment, operation, and maintenance of cockpits, and regulate
cockfighting and commercial breeding of gamecocks: Provided, That
existing rights should not be prejudiced;
(vi) Subject to the guidelines prescribed by the Department of
Transportation and Communications, regulate the operation of tricycles
and grant franchises for the operation thereof within the territorial
jurisdiction of the city;
(vii) Upon approval by a majority vote of all the members of the
sangguniang panlungsod: grant a franchise to any person, partnership,
corporation, or cooperative to do business within the city; establish,
construct, operate and maintain ferries, wharves, markets or
slaughterhouses; or undertake such other activities within the city as
may be allowed by existing laws: Provided, That, cooperatives shall be
given preference in the grant of such a franchise.
(4) Regulate activities relative to the use of land, buildings and structures
within the city in order to promote the general welfare and for said
purpose shall:
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof and any land within
the city be kept and maintained in a sanitary condition; impose penalties
for any violation thereof; or, upon failure to comply with said requirement,
have the work done at the expense of the owner, administrator or tenant
concerned; or require the filling up of any land or premises to a grade
necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other wastes from hospitals,
clinics and other similar establishments;
(iv) Regulate the establishment, operation and maintenance of cafes,
restaurants, beerhouses, hotels, motels, inns, pension houses, lodging
houses, and other similar establishments, including tourist guides and
transports;
(v) Regulate the sale, giving away or dispensing of any intoxicating malt,
vino, mixed or fermented liquors at any retail outlet;
(vi) Regulate the establishment and provide for the inspection of steam
boilers or any heating device in buildings and the storage of inflammable
and highly combustible materials within the city;
(vii) Regulate the establishment, operation, and maintenance of any
entertainment or amusement facilities, including theatrical
performances, circuses, billiard pools, public dancing schools, public
dance halls, sauna baths, massage parlors, and other places for
entertainment or amusement; regulate such other events or activities for
amusement or entertainment, particularly those which tend to disturb the
community or annoy the inhabitants, or require the suspension or
suppression of the same; or, prohibit certain forms of amusement or
entertainment in order to protect the social and moral welfare of the
community;
(viii) Provide for the impounding of stray animals; regulate the keeping
of animals in homes or as part of a business, and the slaughter, sale or
disposition of the same; and adopt measures to prevent and penalize
cruelty to animals; and
(ix) Regulate the establishment, operation and maintenance of funeral
parlors and the burial or cremation of the dead, subject to existing laws,
rules and regulations.
(5) Approve ordinances which shall ensure the efficient and effective
delivery of the basic services and facilities as provided for under Section
17 of this Code, and in addition to said services and facilities, shall:
(i) Provide for the establishment, maintenance, protection, and
conservation of communal forests and watersheds, tree parks,
greenbelts, mangroves, and other similar forest development projects;
(ii) Establish markets, slaughterhouses or animal corrals and authorize
the operation thereof by the city government; and regulate the
construction and operation of private markets, talipapas or other similar
buildings and structures;
(iii) Authorize the establishment, maintenance and operation by the city
government of ferries, wharves, and other structures intended to
accelerate productivity related to marine and seashore or offshore
activities;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables,
fruits, fresh dairy products, and other foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges,
parks and other public places and approve the construction,
improvement repair and maintenance of the same; establish bus and
vehicle stops and terminals or regulate the use of the same by privately-
owned vehicles which serve the public; regulate garages and the
operation of conveyances for hire; designate stands to be occupied by
public vehicles when not in use; regulate the putting up of signs,
signposts, awnings and awning posts on the streets; and provide for the
lighting, cleaning and sprinkling of streets; and public places;
(vi) Regulate traffic on all streets and bridges; prohibit encroachments or
obstacles thereon, and when necessary in the interest of public welfare,
authorize the removal or encroachments and illegal constructions in
public places;
(vii) Subject to existing laws, establish and provide for the maintenance,
repair and operation of an efficient waterworks system to supply water
for the inhabitants and to purify the source of the water supply; regulate
the construction, maintenance, repair and use of hydrants, pumps,
cisterns and reservoirs; protect the purity and quantity of the water
supply of the city and, for this purpose, extend the coverage of
appropriate ordinances over all territory within the drainage area of said
water supply and within one hundred (100) meters of the reservoir,
conduit, canal, aqueduct, pumping station, or watershed used in
connection with the water service; and regulate the consumption, use or
wastage of water and fix and collect charges therefor;
(viii) Regulate the drilling and excavation of the ground for the laying of
water, gas, sewer, and other pipes and the construction, repair and
maintenance of public drains, sewers, cesspools, tunnels and similar
structures; regulate the placing of poles and the use of crosswalks,
curbs, and gutters; adopt measures to ensure public safety against open
canals, manholes. live wires and other similar hazards to life and
property; and regulate the construction and use of private water closets,
privies and other similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and
construction of all gas mains, electric, telegraph and telephone wires,
conduits, meters and other apparatus; and provide for the correction,
condemnation or removal of the same when found to be dangerous,
defective, or otherwise hazardous to the welfare of the inhabitants;
(x) Subject to the availability of funds and to existing laws, rules and
regulations, establish and provide for the operation of vocational and
technical schools and similar post-secondary institutions and, with the
approval of the Department of Education, Culture and Sports and subject
to existing law on tuition fees, fix and collect reasonable tuition fees and
other school charges in educational institutions supported by the city
government;
(xi) Establish a scholarship fund for the poor but deserving students in
schools located within its jurisdiction or for students residing within the
city;
(xii) Approve measures and adopt quarantine regulations to prevent the
introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and
garbage collection and disposal; prohibit littering and the placing or
throwing of garbage, refuse and other filth and wastes;
(xiv) Provide for the care of disabled persons, paupers, the aged, the
sick, persons of unsound mind, abandoned minors, juvenile delinquents,
drug dependents, abused children and other needy and disadvantaged
persons, particularly children and youth below eighteen (18) years of
age; and subject to availability of funds, establish and provide for the
operation of centers and facilities for said needy and disadvantaged
persons;
(xv) Establish and provide for the maintenance and improvement of jails
and detention centers, institute a sound jail management program, and
appropriate funds for the subsistence of detainees and convicted
prisoners in the city;
(xvi) Establish a city council whose purpose is the promotion of culture
and the arts, coordinate with government agencies and non-
governmental organizations and, subject to the availability of funds,
appropriate funds for the support and development of the same; and
(xvii) Establish a city council for the elderly which shall formulate policies
and adopt measures mutually beneficial to the elderly and to the
community; provide incentives for non-governmental agencies and
entities and, subject to the availability of funds, appropriate funds to
support programs and projects for the benefit of the elderly; and
(6) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The members of the sangguniang panlungsod of component cities
shall receive a minimum monthly compensation corresponding to Salary
Grade twenty-five (25) and members of the sangguniang panlungsod of
highly-urbanized cities shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-seven (27), as prescribed under
R.A. 6758 and the implementing guidelines issued pursuant thereto.
TITLE IV
THE PROVINCE
CHAPTER I
Role and Creation of the Province
Section 459. Role of the Province. - The province, composed of cluster
of municipalities, or municipalities and component cities, and as a
political and corporate unit of government, serves as dynamic
mechanism for developmental processes and effective governance of
local government units within its territorial jurisdiction.
Section 460. Manner of Creation. - A province may be created, divided,
merged, abolished, or its boundary substantially altered, only by an Act
of Congress and subject to approval by a majority of the votes cast
in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. The plebiscite shall be
held within one hundred twenty (120) days from the date of effectivity of
said Act, unless otherwise provided therein.
Section 461. Requisites for Creation.
(a) A province may be created if it has an average annual income, as
certified by the Department of Finance, of not less than Twenty million
pesos (P20,000,000.00) based on 1991 constant prices and either of the
following requisites:
(i) a contiguous territory of at least two thousand (2,000) square
kilometers, as certified by the Lands Management Bureau; or
(ii) a population of not less than two hundred fifty thousand (250,000)
inhabitants as certified by the National Statistics Office:
Provided, That, the creation thereof shall not reduce the land area,
population, and income of the original unit or units at the time of said
creation to less than the minimum requirements prescribed herein.
(b) The territory need not be contiguous if it comprise two (2) or more
islands or is separated by a chartered city or cities which do not
contribute to the income of the province.
(c) The average annual income shall include the income accruing to the
general fund, exclusive of special funds, trust funds, transfers and non-
recurring income.
Section 462. Existing Sub-Provinces. - Existing sub-provinces are
hereby converted into regular provinces upon approval by a majority of
the votes cast in a plebiscite to be held in the said subprovinces and the
original provinces directly affected. The plebiscite shall be conducted by
the COMELEC simultaneously with the national elections following the
effectivity of this Code.
The new legislative districts created as a result of such conversion shall
continue to be represented in Congress by the duly-elected
representatives of the original districts out of which said new provinces
or districts were created until their own representatives shall have been
elected in the next regular congressional elections and qualified.
The incumbent elected officials of the said subprovinces converted into
regular provinces shall continue to hold office until June 30, 1992. Any
vacancy occurring in the offices occupied by said incumbent elected
officials, or resulting from expiration of their terms of office in case of a
negative vote in the plebiscite results, shall be filled by appointment by
the President. The appointees shall hold office until their successors
shall have been elected in the regular local elections following the
plebiscite mentioned herein and qualified. After effectivity of such
conversion, the President shall fill up the position of governor of the
newly-created province through appointment if none has yet been
appointed to the same as hereinbefore provided, and shall also appoint
a vice-governor and the other members of the sangguniang
panlalawigan, all of whom shall likewise hold office until their successors
shall have been elected in the next regular local elections and qualified.
All qualified appointive officials and employees in the career service of
the said subprovinces at the time of their conversion into regular
provinces shall continue in office in accordance with civil service law,
rules and regulations.
CHAPTER II
Provincial Officials in General
Section 463. Officials of the Provincial Government.
(a) There shall be in each province a governor, a vice-governor,
members of the sangguniang panlalawigan, a secretary to the
sangguniang panlalawigan, a provincial treasurer, a provincial assessor,
a provincial accountant, a provincial engineer, a provincial budget
officer, a provincial planning and development coordinator, a provincial
legal officer, a provincial administrator, a provincial health officer, a
provincial social welfare and development officer, a provincial general
services officer, a provincial agriculturist, and a provincial veterinarian.
(b) In addition thereto, the governor may appoint a provincial population
officer, a provincial natural resources and environment officer, a
provincial cooperative officer, a provincial architect, and a provincial
information officer.
The appointment of a provincial population officer shall be optional in the
province: Provided, however, That provinces which have existing
population offices shall continue to maintain such offices for a period of
five (5) years from the date of the effectivity of this Code, after which said
offices shall become optional.
(c) The sangguniang panlalawigan may:
(1) Maintain existing offices not mentioned in subsections (a) and (b)
hereof;
(2) Create such other offices as may be necessary to carry out the
purposes of the provincial government; or
(3) Consolidate the functions of any office with those of another in the
interest of efficiency and economy;
(d) Unless otherwise provided herein, heads of departments and offices
shall be appointed by the governor with the concurrence of the majority
of all the sangguniang panlalawigan members, subject to civil service
law, rules and regulations. The sangguniang panlalawigan shall act on
the appointment within fifteen (15) days from the date of its submission;
otherwise the same shall be deemed confirmed;
(e) Elective and appointive provincial officials shall receive such
compensation, allowances, and other emoluments as may be
determined by law or ordinance, subject to the budgetary limitations on
personal services prescribed under Title Five, Book II of this Code:
Provided, That, no increase in compensation shall take effect until after
the expiration of the full term of all the elective officials approving such
increase.
Section 464. Residence and Office. - During the incumbency of the
governor, he shall have his official residence in the capital of the
province. All elective and appointive provincial officials shall hold office
in the provincial capital: Provided, That, upon resolution of the
sangguniang panlalawigan, elective and appointive provincial officials
may hold office in any component city or municipality within the province
for a period of not more than seven (7) days for any given month.
CHAPTER III
Officials and Offices Common to All Provinces
ARTICLE I
The Provincial Governor
Section 465. The Chief Executive: Powers, Duties, Functions, and
Compensation.
(a) The provincial governor, as the chief executive of the provincial
government, shall exercise such powers and perform such duties and
functions as provided by this Code and other laws.
(b) For efficient, effective and economical governance the purpose of
which is the general welfare of the province and its inhabitants pursuant
to Section 16 of this Code, the provincial governor shall:
(1) Exercise general supervision and control over all programs, projects,
services, and activities of the provincial government, and in this
connection, shall:
(i) Determine the guidelines of provincial policies and be responsible to
the sangguniang panlalawigan for the program of government;
(ii) Direct the formulation of the provincial development plan, with the
assistance of the provincial development council, and upon approval
thereof by the sangguniang panlalawigan, implement the same;
(iii) Present the program of government and propose policies and
projects for the consideration of the sangguniang panlalawigan at the
opening of the regular session of the sangguniang panlalawigan every
calendar year and as after as may be deemed necessary as the general
welfare of the inhabitants and the needs of the provincial government
may require;
(iv) Initiate and propose legislative measures to the sangguniang
panlalawigan and as often as may be deemed necessary, provide such
information and data needed or requested by said sanggunian in the
performance of its legislative functions;
(v) Appoint all officials and employees whose salaries and wages are
wholly or mainly paid out of provincial funds and whose appointments
are not otherwise provided for in this Code, as well as those he may be
authorized by law to appoint;
(vi) Represent the province in all its business transactions and sign in its
behalf all bonds, contracts, and obligations, and such other documents
upon authority of the sangguniang panlalawigan or pursuant to law or
ordinance;
(vii) Carry out such emergency measures as may be necessary during
and in the aftermath of man-made and natural disasters and calamities;
(viii) Determine the time, manner and place of payment of salaries or
wages of the officials and employees of the province, in accordance with
law or ordinance;
(ix) Allocate and assign office space to provincial and other officials and
employees who, by law or ordinance, are entitled to such space in the
provincial capitol and other buildings owned or leased by the provincial
government;
(x) Ensure that all executive officials and employees of the province
faithfully discharge their duties and functions as provided by law and this
Code, and cause to be instituted administrative or judicial proceedings
against any official or employee of the province who may have
committed an offense in the performance of his official duties;
(xi) Examine the books, records and other documents of all offices,
officials, agents or employees of the province and, in aid of his executive
powers and authority, require all national officials and employees
stationed in the province to make available to him such books, records,
and other documents in their custody, except those classified by law as
confidential;
(xii) Furnish copies of executive orders issued by him to the Office of the
President within seventy-two (72) hours after their issuance;
(xiii) Visit component cities and municipalities of the province at least
once every six (6) months to deepen his understanding of problems and
conditions, listen and give appropriate counsel to local officials and
inhabitants, inform the officials and inhabitants of component cities and
municipalities of general laws and ordinances which especially concern
them, and otherwise conduct visits and inspections to ensure that the
governance of the province will improve the quality of life of the
inhabitants;
(xiv) Act on leave applications of officials and employees appointed by
him and the commutation of the monetary value of leave credits in
accordance with law;
(xv) Authorize official trips of provincial officials and employees outside
of the province for a period not exceeding thirty (30) days;
(xvi) Call upon any national official or employee stationed in or assigned
to the province to advise him on matters affecting the province and to
make recommendations thereon; coordinate with said official or
employee in the formulation and implementation of plans, programs and
projects; and when appropriate, initiate an administrative or judicial
action against a national government official or employee who may have
committed an offense in the performance of his official duties while
stationed in or assigned to the province;
(xvii) Authorize payment for medical care, necessary transportation,
subsistence, hospital or medical fees of provincial officials and
employees who are injured while in the performance of their official
duties and functions, subject to availability of funds;
(xviii) Represent the province in inter-provincial or regional sports
councils or committees, and coordinate the efforts of component cities
or municipalities in the regional or national palaro or sports development
activities;
(xix) Conduct an annual palarong panlalawigan, which shall feature
traditional sports and disciplines included in national and international
games in coordination with the Department of Education, Culture and
Sports; and
(xx) Submit to the Office of the President the following reports: an annual
report containing a summary of all matters pertinent to the management,
administration and development of the province and all information and
data relative to its political, social and economic conditions; and
supplemental reports when unexpected events and situations arise at
any time during the year, particularly when man-made or natural
disasters or calamities affect the general welfare of the province, region
or country;
(2) Enforce all laws and ordinances relative to the governance of the
province and the exercise of the appropriate corporate powers provided
for under Section 22 of this Code, implement all approved policies,
programs, projects, services and activities of the province and, in
addition to the foregoing, shall:
(i) Ensure that the acts of the component cities and municipalities of the
province and of its officials and employees are within the scope of their
prescribed powers, duties and functions;
(ii) Call conventions, conferences, seminars, or meetings of any elective
and appointive officials of the province and its component cities and
municipalities, including national officials and employees stationed in or
assigned to the province, at such time and place and on such subject as
he may deem important for the promotion of the general welfare of the
province and its inhabitants;
(iii) Issue such executive orders for the faithful and appropriate
enforcement and execution of laws and ordinances;
(iv) Be entitled to carry the necessary firearm within his territorial
jurisdiction;
(v) In coordination with the mayors of component cities and
municipalities and the National Police Commission, formulate the peace
and order plan of the province and upon its approval, implement the
same in accordance with R.A. No. 6975;
(vi) Call upon the appropriate national law enforcement agencies to
suppress disorder, riot, lawless violence, rebellion or sedition or to
apprehend violators of the law when public interest so requires and the
police forces of the component city or municipality where the disorder or
violation is happening are inadequate to cope with the situation or the
violators;
(3) Initiate and maximize the generation of resources and revenues, and
apply the same to the implementation of development plans, program
objectives and priorities as provided for under Section 18 of this Code,
particularly those resources and revenues programmed for agro-
industrial development and country-wide growth and progress and,
relative thereto, shall:
(i) Require each head of an office or department to prepare and submit
an estimate of appropriations for the ensuing calendar year, in
accordance with the budget preparation process under Title Five, Book
II of this Code;
(ii) Prepare and submit to the sanggunian for approval the executive and
supplemental budgets of the province for the ensuing calendar year in
the manner provided for under Title Five, Book II of this Code;
(iii) Ensure that all taxes and other revenues of the province are
collected, and that provincial funds are applied to the payment of
expenses and settlement of obligations of the province, in accordance
with law or ordinance;
(iv) Issue licenses and permits and suspend or revoke the same for any
violation of the conditions upon which said licenses or permits had been
issued, pursuant to law or ordinance;
(v) Adopt adequate measures to safeguard and conserve land, mineral,
marine, forest and other resources of the province, in coordination with
the mayors of component cities and municipalities; provide efficient and
effective property and supply management in the province; and protect
the funds, credits, rights, and other properties of the province; and
(vi) Institute or cause to be instituted administrative or judicial
proceedings for violation of ordinances in the collection of taxes, fees or
charges, and for the recovery of funds and property, and cause the
province to be defended against all suits to ensure that its interests,
resources and rights shall be adequately protected.
4) Ensure the delivery of basic services and the provision of adequate
facilities as provided for under Section 17 of this Code, and in addition
thereto, shall:
(i) Ensure that the construction and repair of roads and highways funded
by the national government shall be, as far as practicable, carried out in
a spatially contiguous manner and in coordination with the construction
and repair of the roads and bridges of the province and of its component
cities and municipalities; and
(ii) Coordinate the implementation of technical services by national
offices for the province and its component cities and municipalities,
including public works and infrastructure programs of the provincial
government and its component cities and municipalities;
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(c) The provincial governor shall receive a minimum monthly
compensation corresponding to Salary Grade thirty (30) prescribed
under R.A. No. 6758 and the implementing guidelines issued pursuant
thereto.
ARTICLE II
The Provincial Vice-Governor
Section 466. Powers, Duties, and Compensation.
(a) The vice-governor shall:
(1) Be the presiding officer of the sangguniang panlalawigan and sign all
warrants drawn on the provincial treasury for all expenditures
appropriated for the operation of the sangguniang panlalawigan;
(2) Subject to civil service law, rules and regulations, appoint all officials
and employees of the sangguniang panlalawigan, except those whose
manner of appointment is specially provided in this Code;
(3) Assume the office of the governor for the unexpired term of the latter
in the event of permanent vacancy as provided for in Section 44, Book I
of this Code;
(4) Exercise the powers and perform the duties and functions of the
governor in cases of temporary vacancy as provided for in Section 46,
Book I of this Code; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The vice-governor shall receive a monthly compensation
corresponding to Salary Grade twenty-eight (28) as prescribed under
R.A. No. 6758 and the implementing guidelines issued pursuant thereto.
ARTICLE III
The Sangguniang Panlalawigan
Section 467. Composition.
(a) The sangguniang panlalawigan, the legislative body of the province,
shall be composed of the provincial vice-governor as presiding officer,
the regular sanggunian members, the president of the provincial chapter
of the liga ng mga barangay, the president of the panlalawigang
pederasyon ng mga sangguniang kabataan, the president of the
provincial federation of sanggunian members of municipalities and
component cities and the sectoral representatives, as members.
(b) In addition thereto, there shall be three (3) sectoral representatives:
one (1) from the women; and as shall be determined by the sanggunian
concerned within ninety (90) days prior to the holding of the local
elections, one (1) from the agricultural or industrial workers; and one (1)
from other sectors including the urban poor, indigenous cultural
communities, or disabled persons.
(c) The regular members of the sangguniang panlalawigan and the
sectoral representatives shall be elected in the manner as may be
provided for by law.
Section 468. Powers, Duties, Functions and Compensation.
(a) The sangguniang panlalawigan, as the legislative body of the
province, shall enact ordinances, approve resolutions and appropriate
funds for the general welfare of the province and its inhabitants pursuant
to Section 16 of this Code in the proper exercise of the corporate powers
of the province as provided for under Section 22 of this Code, and shall:
(1) Approve ordinances and pass resolutions necessary for an efficient
and effective provincial government and, in this connection, shall:
(i) Review all ordinances approved by the sangguniang of component
cities and municipalities and executive orders issued by the mayors of
said component units to determine whether these are within the scope
of the prescribed powers of the sanggunian and of the mayor;
(ii) Maintain peace and order by enacting measures to prevent and
suppress lawlessness, disorder, riot, violence, rebellion or sedition and
impose penalties for the violation of said ordinances;
(iii) Approve ordinances imposing a fine not exceeding Five thousand
pesos (P5,000.00) or imprisonment not exceeding one (1) year, or both
in the discretion of the court, for the violation of a provincial ordinance;
(iv) Adopt measures to protect the inhabitants of the province from
harmful effects of man-made or natural disasters and calamities, and to
provide relief services and assistance for victims during and in the
aftermath of said disasters and calamities and their return to productive
livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose
appropriate penalties for habitual drunkenness in public places,
vagrancy, mendicancy, prostitution, establishment and maintenance of
houses of ill repute, gambling and other prohibited games of chance,
fraudulent devices and ways to obtain money or property, drug addiction,
maintenance of drug dens, drug pushing, juvenile delinquency, the
printing, distribution or exhibition of obscene or pornographic materials
or publications, and other activities inimical to the welfare and morals of
the inhabitants of the province;
(vi) Protect the environment and impose appropriate penalties for acts
which endanger the environment, such as dynamite fishing and other
forms of destructive fishing, illegal logging and smuggling of logs,
smuggling of natural resources products and of endangered species of
flora and fauna, slash and burn farming, and such other activities which
result in pollution acceleration of eutrophication of rivers and lakes, or of
ecological imbalance;
(vii) Subject to the provisions of this Code and pertinent laws, determine
the powers and duties of officials and employees of the province;
(viii) Determine the positions and the salaries, wages, allowances and
other emoluments and benefits of officials and employees paid wholly or
mainly from provincial funds and provide for expenditures necessary for
the proper conduct of programs, projects, services, and activities of the
provincial government;
(ix) Authorize the payment of compensation to a qualified person not in
the government service who fills up a temporary vacancy, or grant
honorarium to any qualified official or employee designated to fill a
temporary vacancy in a concurrent capacity, at the rate authorized by
law;
(x) Provide a mechanism and the appropriate funds therefor, to ensure
the safety and protection of all provincial government property, public
documents, or records such as those relating to property inventory, land
ownership, records of births, marriages, deaths, assessments, taxation,
accounts, business permits, and such other records and documents of
public interest in the offices and departments of the provincial
government; and
(xi) When the finances of the provincial government allow, provide for
additional allowances and other benefits to judges, prosecutors, public
elementary and high school teachers, and other national government
officials stationed or assigned to the province.
(2) Generate and maximize the use of resources and revenues for the
development plans, program objectives and priorities of the province as
provided for under Section 18 of this Code, with particular attention to
agro-industrial development and country-wide growth and progress and
relative thereto, shall:
(i) Enact the annual and supplemental appropriations of the provincial
government and appropriate funds for specific programs, projects,
services and activities of the province, or for other purposes not contrary
to law, in order to promote the general welfare of the province and its
inhabitants;
(ii) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang
panlalawigan, enact ordinances levying taxes, fees and charges,
prescribing the rates thereof for general and specific purposes, and
granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang
panlalawigan, authorize the provincial governor to negotiate and
contract loans and other forms of indebtedness;
(iv) Subject to the provisions of Book II of this Code and applicable laws
and upon the majority vote of all the members of the sangguniang
panlalawigan, enact ordinances authorizing the floating of bonds or
other instruments of indebtedness, for the purpose of raising funds to
finance development projects;
(v) Appropriate funds for the construction and maintenance or the rental
of buildings for the use of the province; and upon the majority vote of all
the members of the sangguniang panlalawigan, authorize the provincial
governor to lease to private parties such public buildings held in a
proprietary capacity, subject to existing laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on the use of property
within the jurisdiction of the province;
(vii) Review the comprehensive land use plans and zoning ordinances
of component cities and municipalities and adopt a comprehensive
provincial land use plan, subject to existing laws; and
(viii) Adopt measures to enhance the full implementation of the national
agrarian reform program in coordination with the Department of Agrarian
Reform;
(3) Subject to the provisions of Book II of this Code, grant franchises,
approve the issuance of permits or licenses, or enact ordinances levying
taxes, fees and charges upon such conditions and for such purposes
intended to promote the general welfare of the inhabitants of the
province, and pursuant to this legislative authority, shall:
(i) Fix and impose reasonable fees and charges for all services rendered
by the provincial government to private persons or entities; and
(ii) Regulate and fix the license fees for such activities as provided for
under this Code.
(4) Approve ordinances which shall ensure the efficient and effective
delivery of basic services and facilities as provided for under Section 17
of this Code, and, in addition to said services and facilities, shall:
(i) Adopt measures and safeguards against pollution and for the
preservation of the natural ecosystem in the province, in consonance
with approved standards on human settlements and environmental
sanitation;
(ii) Subject to applicable laws, facilitate or provide for the establishment
and maintenance of waterworks system or district waterworks for
supplying water to inhabitants of component cities and municipalities;
(iii) Subject to the availability of funds and to existing laws, rules and
regulations, provide for the establishment and operation of vocational
and technical schools and similar post-secondary institutions; and, with
the approval of the Department of Education, Culture and Sports and
subject to existing laws on tuition fees, fix reasonable tuition fees and
other school charges in educational institutions supported by the
provincial government;
(iv) Establish a scholarship fund for the poor but deserving students in
schools located within its jurisdiction or for students residing within the
province;
(v) Approve measures and adopt quarantine regulations to prevent the
introduction and spread of diseases within its territorial jurisdiction;
(vi) Provide for the care of paupers, the aged, the sick, persons of
unsound mind, abandoned minors, abused children, disabled persons,
juvenile delinquents, drug dependents, and other needy and
disadvantaged persons, particularly children and youth below eighteen
(18) years of age; subject to availability of funds, establish and support
the operation of centers and facilities for said needy and disadvantaged
persons; and facilitate efforts to promote the welfare of families below
the poverty threshold, the disadvantaged, and the exploited;
(vii) Establish and provide the maintenance and improvement of jails and
detention centers, institute a sound jail management program, and
appropriate funds for the subsistence of detainees and convicted
prisoners in the province;
(viii) Establish a provincial council whose purpose is the promotion of
culture and the arts, coordinate with government agencies and non-
governmental organizations and, subject to the availability of funds,
appropriate funds for the support and development of the same;
(ix) Establish a provincial council for the elderly which shall formulate
policies and adopt measures mutually beneficial to the elderly and to the
province; and subject to the availability of funds, appropriate funds to
support programs and projects for the elderly; and provide incentives for
non-governmental agencies and entities to support the programs and
projects of the elderly; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(b) The members of the sangguniang panlalawigan shall receive a
minimum monthly compensation corresponding to Salary Grade twenty-
seven (27) as prescribed under R.A. No. 6758 and the implementing
guidelines issued pursuant thereto.
TITLE V
APPOINTED LOCAL OFFICIALS COMMON TO ALL
MUNICIPALITIES, CITIES AND PROVINCES
ARTICLE I
Secretary to the Sanggunian
Section 469. Qualifications, Powers and Duties.
(a) There shall be a secretary to the sanggunian who shall be a career
official with the rank and salary equal to a head of department or office.
(b) No person shall be appointed secretary to the sanggunian unless he
is a citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree
preferably in law, commerce or public administration from a recognized
college or university, and a first grade civil service eligible or its
equivalent.
The appointment of a secretary to the sanggunian is mandatory for
provincial, city and municipal governments.
(c) The secretary to the sanggunian shall take charge of the office of the
secretary to the sanggunian and shall:
(1) Attend meetings of the sanggunian and keep a journal of its
proceedings;
(2) Keep the seal of the local government unit and affix the same with
his signature to all ordinances, resolutions, and other official acts of the
sanggunian and present the same to the presiding officer for his
signature;
(3) Forward to the governor or mayor, as the case may be, for approval,
copies of ordinances enacted by the sanggunian and duly certified by
the presiding officer, in the manner provided in Section 54 under Book I
of this Code;
(4) Forward to the sanggunian panlungsod or bayan concerned, in the
case of the sangguniang barangay, and to the sangguniang
panlalawigan concerned, in the case of the sangguniang panlungsod of
component cities or sangguniang bayan, copies of duly approved
ordinances, in the manner provided in Sections 56 and 57 under Book I
of this Code;
(5) Furnish, upon request of any interested party, certified copies of
records of public character in his custody, upon payment to the treasurer
of such fees as may be prescribed by ordinance;
(6) Record in a book kept for the purpose, all ordinances and resolutions
enacted or adopted by the sanggunian, with the dates of passage and
publication thereof;
(7) Keep his office and all non-confidential records therein open to the
public during the usual business hours;
(8) Translate into the dialect used by the majority of the inhabitants all
ordinances and resolutions immediately after their approval, and cause
the publication of the same together with the original version in the
manner provided under this Code; and
(9) Take custody of the local archives and, where applicable, the local
library and annually account for the same; and
(d) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance relative to his
position.
ARTICLE II
The Treasurer
Section 470. Appointment, Qualifications, Powers, and Duties.
(a) The treasurer shall be appointed by the Secretary of Finance from a
list of at least three (3) ranking, eligible recommendees of the governor
or mayor, as the case may be, subject to civil service law, rules and
regulations.
(b) The treasurer shall be under the administrative supervision of the
governor or mayor, as the case may be, to whom he shall report
regularly on the tax collection efforts in the local government unit;
(c) No person shall be appointed treasurer unless he is a citizen of the
Philippines, a resident of the local government unit concerned, of good
moral character, a holder of a college degree preferably in commerce,
public administration or law from a recognized college or university, and
a first grade civil service eligible or its equivalent. He must have acquired
experience in treasury or accounting service for at least five (5) years in
the case of the city or provincial treasurer, and three (3) years in the
case of municipal treasurer.
The appointment of a treasurer shall be mandatory for provincial, city
and municipal governments;
(d) The treasurer shall take charge of the treasury office, perform the
duties provided for under Book II of this Code, and shall:
(1) Advise the governor or mayor, as the case may be, the sanggunian,
and other local government and national officials concerned regarding
disposition of local government funds, and on such other matters relative
to public finance;
(2) Take custody of and exercise proper management of the funds of the
local government unit concerned;
(3) Take charge of the disbursement of all local government funds and
such other funds the custody of which may be entrusted to him by law
or other competent authority;
(4) Inspect private commercial and industrial establishments within the
jurisdiction of the local government unit concerned in relation to the
implementation of tax ordinances, pursuant to the provisions under Book
II of this Code;
(5) Maintain and update the tax information system of the local
government unit;
(6) In the case of the provincial treasurer, exercise technical supervision
over all treasury offices of component cities and municipalities; and
(e) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 471. Assistant Treasurer.
(a) An assistant treasurer may be appointed by the Secretary of Finance
from a list of at least three (3) ranking, eligible recommendees of the
governor or mayor, subject to civil service law, rules and regulations.
(b) No person shall be appointed assistant treasurer unless he is a
citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree
preferably in commerce, public administration, or law from a recognized
college or university, and a first grade civil service eligible or its
equivalent. He must have acquired at least five (5) years experience in
the treasury or accounting service in the case of the city or provincial
assistant treasurer and three (3) years in the case of municipal assistant
treasurer.
The appointment of an assistant treasurer shall be optional for provincial,
city and municipal governments;
(c) The assistant treasurer shall assist the treasurer and perform such
duties as the latter may assign to him. He shall have authority to
administer oaths concerning notices and notifications to those
delinquent in the payment of real property tax and concerning official
matters relating to the accounts of the treasurer or otherwise arising in
the offices of the treasurer and the assessor.
ARTICLE III
The Assessor
Section 472. Qualifications, Powers and Duties.
(a) No person shall be appointed assessor unless he is a citizen of the
Philippines, a resident of the local government unit concerned, of good
moral character, a holder of a college degree preferably in civil or
mechanical engineering, commerce, or any other related course from a
recognized college or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in real property
assessment work or in any related field for at least five (5) years in the
case of the city or provincial assessor, and three (3) years in the case of
the municipal assessor.
The appointment of an assessor shall be mandatory for provincial, city
and municipal governments.
(b) The assessor shall take charge of the assessor's office, perform the
duties provided under Book II of this Code, and shall:
(1) Ensure that all laws and policies governing the appraisal and
assessment of real properties for taxation purposes are properly
executed;
(2) Initiate, review, and recommend changes in policies and objectives,
plans and programs, techniques, procedures and practices in the
valuation and assessment of real properties for taxation purposes;
(3) Establish a systematic method of real property assessment;
(4) Install and maintain a real property identification and accounting
system;
(5) Prepare, install and maintain a system of tax mapping, showing
graphically all property subject to assessment and gather all data
concerning the same;
(6) Conduct frequent physical surveys to verify and determine whether
all real property within the province are properly listed in the assessment
rolls;
(7) Exercise the functions of appraisal and assessment primarily for
taxation purposes of all real properties in the local government unit
concerned;
(8) Prepare a schedule of the fair market value for the different classes
of real properties, in accordance with Title Two under Book II of this
Code;
(9) Issue, upon request of any interested party, certified copies of
assessment records of real property and all other records relative to its
assessment, upon payment of a service charge or fee to the treasurer;
(10) Submit every semester a report of all assessments, as well as
cancellations and modifications of assessments to the local chief
executive and the sanggunian concerned;
(11) In the case of the assessor of a component city or municipality
attend, personally or through an authorized representative, all sessions
of the local board of assessment appeals whenever his assessment is
the subject of the appeal, and present or submit any information or
record in his possession as may be required by the board; and
(12) In the case of the provincial assessor, exercise technical
supervision and visitorial functions over all component city and municipal
assessor, coordinate with component city or municipal assessors in the
conduct of tax mapping operations and all other assessment activities,
and provide all forms of assistance therefor: Provided, however, That,
upon full provision by the component city or municipality concerned to
its assessor's office of the minimum personnel, equipment, and funding
requirements as may be prescribed by the Secretary of Finance, such
functions shall be delegated to the said city or municipal assessor; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Section 473. Assistant Assessor.
(a) No person shall be appointed assistant assessor unless he is a
citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree
preferably in civil or mechanical engineering, commerce, or any related
course from a recognized college or university, and a first grade civil
service eligible or its equivalent. He must have acquired experience in
assessment or in any related field for at least three (3) years in the case
of the city or provincial assistant assessor, and one (1) year in the case
of the city or provincial assistant assessor.
The appointment of an assistant assessor shall be optional for provincial,
city and municipal governments.
(b) The assistant assessor shall assist the assessor and perform such
other duties as the latter may assign to him. He shall have the authority
to administer oaths on all declarations of real property for purposes of
assessments.
ARTICLE IV
The Accountant
Section 474. Qualifications, Powers and Duties.
(a) No person shall be appointed accountant unless he is a citizen of the
Philippines, a resident of the local government unit concerned, of good
moral character, and a a certified public accountant. He must have
acquired experience in the treasury or accounting service for at least five
(5) years in the case of the provincial or city accountant, and three (3)
years in the case of the municipal accountant.
The appointment of an accountant is mandatory for the provincial, city
and municipal governments.
(b) The accountant shall take charge of both the accounting and internal
audit services of the local government unit concerned and shall:
(1) Install and maintain an internal audit system in the local government
unit concerned;
(2) Prepare and submit financial statements to the governor or mayor,
as the case may be, and to the sanggunian concerned;
(3) Appraise the sanggunian and other local government officials on the
financial condition and operations of the local government unit
concerned;
(4) Certify to the availability of budgetary allotment to which expenditures
and obligations may be properly charged;
(5) Review supporting documents before preparation of vouchers to
determine completeness of requirements;
(6) Prepare statements of cash advances, liquidation, salaries,
allowances, reimbursements and remittances pertaining to the local
government unit;
(7) Prepare statements of journal vouchers and liquidation of the same
and other adjustments related thereto;
(8) Post individual disbursements to the subsidiary ledger and index
cards;
(9) Maintain individual ledgers for officials and employees of the local
government unit pertaining to payrolls and deductions;
(10) Record and post in index cards details of purchased furniture,
fixtures, and equipment, including disposal thereof, if any;
(11) Account for all issued requests for obligations and maintain and
keep all records and reports related thereto;
(12) Prepare journals and the analysis of obligations and maintain and
keep all records and reports related thereto; and
(13) Exercise such other powers and perform such other duties and
functions as may be provided by law or ordinance.
(c) The incumbent chief accountant in the office of the treasurer shall be
given preference in the appointment to the position of accountant.
ARTICLE V
The Budget Officer
Section 475. Qualifications, Powers and Duties.
(a) No person shall be appointed budget officer unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree preferably in
accounting, economics, public administration or any related course from
a recognized college or university, and a first grade civil service eligible
or its equivalent. He must have acquired experience in government
budgeting or in any related field for at least five (5) years in the case of
the provincial or city budget officer, and at least three (3) years in the
case of the municipal budget officer.
The appointment of a budget officer shall be mandatory for the
provincial, city, and municipal governments.
(b) The budget officer shall take charge of the budget office and shall:
(1) Prepare forms, orders, and circulars embodying instructions on
budgetary and appropriation matters for the signature of the governor or
mayor, as the case may be;
(2) Review and consolidate the budget proposals of different
departments and offices of the local government unit;
(3) Assist the governor or mayor, as the case may be, in the preparation
of the budget and during budget hearings;
(4) Study and evaluate budgetary implications of proposed legislation
and submit comments and recommendations thereon;
(5) Submit periodic budgetary reports to the Department of Budget and
Management;
(6) Coordinate with the treasurer, accountant, and the planning and
development coordinator for the purpose of budgeting;
(7) Assist the sanggunian concerned in reviewing the approved budgets
of component local government units;
(8) Coordinate with the planning and development coordinator in the
formulation of the local government unit development plan; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
(d) The appropriations for personal services of the budget officer
provided under the Department of Budget and Management shall, upon
effectivity of this Code, be transferred to the local government unit
concerned. Thereafter, the appropriations for personal services of the
budget officer shall be provided for in full in the budget of the local
government unit.
ARTICLE VI
The Planning and Development Coordinator
Section 476. Qualifications, Powers and Duties.
(a) No person shall be appointed planning and development coordinator
unless he is a citizen of the Philippines, a resident of the local
government unit concerned, of good moral character, a holder of a
college degree preferably in urban planning, development studies,
economics, public administration, or any related course from a
recognized college or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in development
planning or in any related field for at least five (5) years in the case of
the provincial or city planning and development coordinator, and three
(3) years in the case of the municipal planning and development
coordinator.
The appointment of a planning and development coordinator shall be
mandatory for provincial, city and municipal governments.
(b) The planning and development coordinator shall take charge of the
planning and development office and shall:
(1) Formulate integrated economic, social, physical, and other
development plans and policies for consideration of the local
government development council;
(2) Conduct continuing studies, researches, and training programs
necessary to evolve plans and programs for implementation;
(3) Integrate and coordinate all sectoral plans and studies undertaken
by the different functional groups or agencies;
4) Monitor and evaluate the implementation of the different development
programs, projects, and activities in the local government unit concerned
in accordance with the approved development plan;
(5) Prepare comprehensive plans and other development planning
documents for the consideration of the local development council;
(6) Analyze the income and expenditure patterns, and formulate and
recommend fiscal plans and policies for consideration of the finance
committee of the local government unit concerned as provided under
Title Five, Book II of this Code;
(7) Promote people participation in development planning within the
local government unit concerned;
(8) Exercise supervision and control over the secretariat of the local
development council; and
(c) Exercise such other powers and perform such other functions and
duties as may be prescribed by law or ordinance.
ARTICLE VII
The Engineer
Section 477. Qualifications, Powers and Duties.
(a) No person shall be appointed engineer unless he is a citizen of the
Philippines, a resident of the local government unit concerned, of good
moral character, and a licensed civil engineer. He must have acquired
experience in the practice of his profession for at least five (5) years in
the case of the provincial or city engineer, and three (3) years in the case
of the municipal engineer.
The appointment of an engineer shall be mandatory for the provincial,
city and municipal governments. The city and municipal engineer shall
also act as the local building official.
(b) The engineer shall take charge of the engineering office and shall:
(1) Initiate, review and recommend changes in policies and objectives,
plans and programs, techniques, procedures and practices in
infrastructure development and public works in general of the local
government unit concerned;
(2) Advise the governor or mayor, as the case may be, on infrastructure,
public works, and other engineering matters;
(3)Administer, coordinate, supervise, and control the construction,
maintenance, improvement, and repair of roads, bridges, and other
engineering and public works projects of the local government unit
concerned;
(4) Provide engineering services to the local government unit concerned,
including investigation and survey, engineering designs, feasibility
studies, and project management;
(5) In the case of the provincial engineer, exercise technical supervision
over all engineering offices of component cities and municipalities; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE VIII
The Health Officer
Section 478. Qualifications, Powers and Duties.
(a) No person shall be appointed health officer unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, and a licensed medical practitioner. He must have
acquired experience in the practice of his profession for at least five (5)
years in the case of the provincial or city health officer, and three (3)
years in the case of the municipal health officer.
The appointment of a health officer shall be mandatory for provincial, city
and municipal governments.
(b) The health officer shall take charge of the office on health and shall:
(1) Take charge of the office on health services, supervise the personnel
and staff of said office, formulate program implementation guidelines
and rules and regulations for the operation of the said office for the
approval of the governor or mayor, as the case may be, in order to assist
him in the efficient, effective and economical implementation of a health
services program geared to implementation of health-related projects
and activities;
(2) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out activities to ensure the delivery of basic
services and provisions of adequate facilities relative to health services
provided under Section 17 of this Code;
(3) Develop plans and strategies and upon approval thereof by the
governor or mayor as the case may be, implement the same, particularly
those which have to do with health programs and projects which the
governor or mayor, is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(4) In addition to the foregoing duties and functions, the health officer
shall:
(i) Formulate and implement policies, plans, programs and projects to
promote the health of the people in the local government unit concerned;
(ii) Advise the governor or mayor, as the case may be, and the
sanggunian on matters pertaining to health;
(iii) Execute and enforce laws, ordinances and regulations relating to
public health;
(iv) Recommend to the sanggunian, through the local health board, the
passage of such ordinances as he may deem necessary for the
preservation of public health;
(v) Recommend the prosecution of any violation of sanitary laws,
ordinances or regulations;
(vi) Direct the sanitary inspection of all business establishments selling
food items or providing accommodations such as hotels, motels, lodging
houses, pension houses, and the like, in accordance with the Sanitation
Code;
(vii) Conduct health information campaigns and render health
intelligence services;
(viii) Coordinate with other government agencies and non-governmental
organizations involved in the promotion and delivery of health services;
and
(ix) In the case of the provincial health officer, exercise general
supervision over health officers of component cities and municipalities;
and
(5) Be in the frontline of health services, delivery, particularly during and
in the aftermath of man-made and natural disasters and calamities; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE IX
The Civil Registrar
Section 479. Qualifications, Powers and Duties.
(a) No person shall be appointed civil registrar unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree from a recognized
college or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in civil registry work for
at least five (5) years in the case of the city civil registrar and three (3)
years in the case of the municipal civil registrar.
The appointment of a civil registrar shall be mandatory for city and
municipal governments.
(b) The civil registrar shall be responsible for the civil registration
program in the local government unit concerned, pursuant to the Civil
Registry Law, the Civil Code, and other pertinent laws, rules and
regulations issued to implement them.
(c) The Civil Registrar shall take charge of the office of the civil registry
and shall:
(1) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with civil registry programs and
projects which the mayor is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(2) In addition to the foregoing duties and functions, the civil registrar
shall:
(i) Accept all registrable documents and judicial decrees affecting the
civil status of persons;
(ii) File, keep and preserve in a secure place the books required by law;
(iii) Transcribe and enter immediately upon receipt all registrable
documents and judicial decrees affecting the civil status of persons in
the appropriate civil registry books;
(iv) Transmit to the Office of the Civil Registrar-General, within the
prescribed period, duplicate copies of registered documents required by
law;
(v) Issue certified transcripts or copies of any certificate or registered
documents upon payment of the prescribed fees to the treasurer;
(vi) Receive applications for the issuance of a marriage license and, after
determining that the requirement and supporting certificates and
publication thereof for the prescribed period have been complied with,
issue the license upon payment of the authorized fee to the treasurer;
(vii) Coordinate with the National Statistics Office in conducting
educational campaigns for vital registration and assist in the preparation
of demographic and other statistics for the local government unit
concerned; and
(3) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE X
The Administrator
Section 480. Qualifications, Terms, Powers and Duties.
(a) No person shall be appointed administrator unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree preferably in public
administration, law, or any other related course from a recognized
college or university, and a first grade civil service eligible or its
equivalent. He must have acquired experience in management and
administration work for at least five (5) years in the case of the provincial
or city administrator, and three (3) years in the case of the municipal
administrator.
The term of administrator is coterminous with that of his appointing
authority.
The appointment of an administrator shall be mandatory for the
provincial and city governments, and optional for the municipal
government.
(b) The administrator shall take charge of the office of the administrator
and shall:
(1) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same particularly
those which have to do with the management and administration-related
programs and projects which the governor or mayor is empowered to
implement and which the sanggunian is empowered to provide for under
this Code;
(2) In addition to the foregoing duties and functions, the administrator
shall:
(i) Assist in the coordination of the work of all the officials of the local
government unit, under the supervision, direction, and control of the
governor or mayor, and for this purpose, he may convene the chiefs of
offices and other officials of the local government unit;
(ii) Establish and maintain a sound personnel program for the local
government unit designed to promote career development and uphold
the merit principle in the local government service;
(iii) Conduct a continuing organizational development of the local
government unit with the end in view of the instituting effective
administrative reforms;
(3) Be in the frontline of the delivery of administrative support services,
particularly those related to the situations during and in the aftermath of
man-made and natural disasters and calamities;
(4) Recommend to the sanggunian and advise the governor and mayor,
as the case may be, on all other matters relative to the management and
administration of the local government unit; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or by ordinance.
ARTICLE XI
The Legal Officer
Section 481. Qualifications, Terms, Powers and Duties.
(a) No person shall be appointed legal officer unless he is a citizen of
the Philippines, a resident of the local government concerned, of good
moral character, and a member of the Philippine Bar. He must have
practiced his profession for at least five (5) years in the case of the
provincial and city legal officer, and three (3) years in the case of the
municipal legal officer.
The term of the legal officer shall be coterminous with that of his
appointing authority.
The appointment of legal officer shall be mandatory for the provincial
and city governments and optional for the municipal government.
(b) The legal officer, the chief legal counsel of the local government unit,
shall take charge of the office of legal services and shall:
(1) Formulate measures for the consideration of the sanggunian and
provide legal assistance and support to the governor or mayor, as the
case may be, in carrying out the delivery of basic services and provisions
of adequate facilities as provided for under Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with programs and projects related
to legal services which the governor or mayor is empowered to
implement and which the sanggunian is empowered to provide for under
this Code;
(3) In addition to the foregoing duties and functions, the legal officer
shall:
(i) Represent the local government unit in all civil actions and special
proceedings wherein the local government unit or any official thereof, in
his official capacity, is a party: Provided, That, in actions or proceedings
where a component city or municipality is a party adverse to the
provincial government or to another component city or municipality, a
special legal officer may be employed to represent the adverse party;
(ii) When required by the governor, mayor or sanggunian, draft
ordinances, contracts, bonds, leases and other instruments, involving
any interest of the local government unit and provide comments and
recommendations on any instrument already drawn;
(iii) Render his opinion in writing on any question of law when requested
to do so by the governor, mayor or sanggunian;
(iv) Investigate or cause to be investigated any local official or employee
for administrative neglect or misconduct in office, and recommend
appropriate action to the governor, mayor or sanggunian, as the case
may be;
(v) Investigate or cause to be investigated any person, firm or
corporation holding any franchise or exercising any public privilege for
failure to comply with any term or condition in the grant of such franchise
or privilege, and recommending appropriate action to the governor,
mayor or sanggunian, as the case may be;
(vi) When directed by the governor, mayor, or sanggunian, initiate and
prosecute in the interest of the local government unit concerned any civil
action on any bond, lease or other contract upon any breach or violation
thereof; and
(vii) Review and submit recommendations on ordinances approved and
execute orders issued by component units;
(3) Recommend measures to the sanggunian and advise the governor
or mayor as the case may be on all other matters related to upholding
the rule of law;
(4) Be in the frontline of protecting human rights and prosecuting any
violations thereof, particularly those which occur during and in the
aftermath of man-made or natural disasters or calamities; and
(5) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XII
The Agriculturist
Section 482. Qualifications, Powers and Duties.
(a) No person shall be appointed agriculturist unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree in agriculture or any
related course from a recognized college or university and a first grade
civil service eligible or its equivalent. He must have practiced his
profession in agriculture or acquired experience in a related field for at
least five (5) years in the case of the provincial and city agriculturist, and
three (3) years in the case of the municipal agriculturist.
The position of the agriculturist shall be mandatory for the provincial
government and optional for the city and municipal governments.
(b) The agriculturist shall take charge of the office for agricultural
services, and shall:
(1) Formulate measures for the approval of the sanggunian and provide
technical assistance and support to the governor or mayor, as the case
may be, in carrying out said measures to ensure the delivery of basic
services and provisions of adequate facilities relative to agricultural
services as provided for under Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with agricultural programs and
projects which the governor or mayor is empowered to implement and
which the sanggunian is empowered to provide for under this Code;
(3) In addition to the foregoing duties and functions, the agriculturist
shall:
(i) Ensure that maximum assistance and access to resources in the
production, processing and marketing of agricultural and aqua-cultural
and marine products are extended to farmers, fishermen and local
entrepreneurs;
(ii) Conduct or cause to be conducted location-specific agricultural
researches and assist in making available the appropriate technology
arising out of and disseminating information on basic research on crops,
preventive and control of plant diseases and pests, and other agricultural
matters which will maximize productivity;
(iii) Assist the governor or mayor, as the case may be, in the
establishment and extension services of demonstration forms or aqua-
culture and marine products;
(iv) Enforce rules and regulations relating to agriculture and aqua-
culture;
(v) Coordinate with government agencies and non-governmental
organizations which promote agricultural productivity through
appropriate technology compatible with environmental integrity;
(4) Be in the frontline of delivery of basic agricultural services,
particularly those needed for the survival of the inhabitants during and in
the aftermath of man-made and natural disasters;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all other matters related to agriculture and aqua-
culture which will improve the livelihood and living conditions of the
inhabitants; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance;
ARTICLE XIII
The Social Welfare and Development Officer
Section 483. Qualifications, Powers and Duties
(a) No person shall be appointed social welfare and development officer
unless he is a citizen of the Philippines, a resident of the local
government concerned, of good moral character, a duly licensed social
worker or a holder of a college degree preferably in sociology or any
other related course from a recognized college or university, and a first
grade civil service eligible or its equivalent. He must have acquired
experience in the practice of social work for at least five (5) years in the
case of the provincial or city social welfare and development officer, and
three (3) years in the case of the municipal social welfare and
development officer.
The appointment of a social welfare and development officer is
mandatory for provincial and city governments, and optional for
municipal government.
(b) The social welfare and development officer shall take charge of the
office on social welfare and development services and shall:
(1) Formulate measures for the approval of the sanggunian and provide
technical assistance and support to the governor or mayor, as the case
may be, in carrying out measures to endure the delivery of basic services
and provisions of adequate facilities relative to social welfare and
development services as provided for under Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same particularly
those which have to do with social welfare programs and projects which
the governor or mayor is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(3) In addition to the foregoing duties, the social welfare and
development officer shall:
(i) Identify the basic needs of the needy, the disadvantaged and the
impoverished and develop and implement appropriate measures to
alleviate their problems and improve their living conditions;
(ii) Provide relief and appropriate crisis intervention for victims of abuse
and exploitation and recommend appropriate measures to deter further
abuse and exploitation;
(iii) Assist the governor or mayor, as the case may be, in implementing
the barangay level program for the total development and protection of
children up to six (6) years of age;
(iv) Facilitate the implementation of welfare programs for the disabled,
elderly, and victims of drug addiction, the rehabilitation of prisoners and
parolees, the prevention of juvenile delinquency and such other activities
which would eliminate or minimize the ill-effects of poverty;
(v) Initiate and support youth welfare programs that will enhance the role
of the youth in nation-building;
(vi) Coordinate with government agencies and non-governmental
organizations which have for their purpose the promotion and the
protection of all needy, disadvantaged, underprivileged or impoverished
groups or individuals, particularly those identified to be vulnerable and
high-risk to exploitation, abuse and neglect;
(4) Be in the frontline or service delivery, particularly those which have
to do with immediate relief during and assistance in the aftermath of
man-made and natural disaster and natural calamities;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all other matters related to social welfare and
development services which will improve the livelihood and living
conditions of the inhabitants; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance;
ARTICLE XIV
The Environment and Natural Resources Officer
Section 484. Qualifications, Powers and Duties.
(a) No person shall be appointed environment and natural resources
officer unless he is a citizen of the Philippines, a resident of the local
government unit concerned, of good moral character, a holder of a
college degree preferably in environment, forestry, agriculture or any
related course from a recognized college or university, and a first grade
civil service eligible or its equivalent. He must have acquired experience
in environmental and natural resources management, conservation, and
utilization, of at least five (5) years in the case of the provincial or city
environment and natural resources officer, and three (3) years in the
case of the municipal environment and natural resources officer.
The appointment of the environment and natural resources officer is
optional for provincial, city, and municipal governments.
(b) The environment and natural resources management officer shall
take charge of the office on environment and natural resources and
shall:
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities relative to environment and
natural resources services as provided for under Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof, by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with environment and natural
resources programs and projects which the governor or mayor is
empowered to implement and which the sanggunian is empowered to
provide for under this Code;
(3) In addition to the foregoing duties and functions, the environment and
natural resources officer shall:
(i) Establish, maintain, protect and preserve communal forests,
watersheds, tree parks, mangroves, greenbelts and similar forest
projects and commercial forest, like industrial tree farms and agro-
forestry projects;
(ii) Provide extension services to beneficiaries of forest development
projects and technical, financial and infrastructure assistance;
(iii) Manage and maintain seed banks and produce seedlings for forest
and tree parks;
(iv) Provide extension services to beneficiaries of forest development
projects and render assistance for natural resources-related
conservation and utilization activities consistent with ecological balance;
(v) Promote the small-scale mining and utilization of mineral resources,
particularly mining of gold;
(vi) Coordinate with government agencies and non-governmental
organizations in the implementation of measures to prevent and control
land, air and water pollution with the assistance of the Department of
Environment and Natural Resources;
(4) Be in the frontline of the delivery of services concerning the
environment and natural resources, particularly in the renewal and
rehabilitation of the environment during and in the aftermath of man-
made and natural calamities and disasters;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all matters relative to the protection,
conservation maximum utilization, application of appropriate technology
and other matters related to the environment and natural resources; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XV
The Architect
Section 485. Qualifications, Powers and Duties.
(a) No person shall be appointed architect unless he is a citizen of the
Philippines, a resident of the local government unit concerned, of good
moral character, a duly licensed architect. He must have practiced his
profession for at least five (5) years in the case of the provincial or city
architect, and three (3) years in the case of the municipal architect.
The appointment of the architect is optional for provincial, city and
municipal governments.
(b) The Architect shall take charge of the office on architectural planning
and design and shall:
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities relative to architectural
planning and design as provided for under Section 17 of this Code;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with architectural planning and
design programs and projects which the governor or mayor is
empowered to implement and which the sanggunian is empowered to
provide for under this Code;
(3) In addition to foregoing duties and functions, the architect shall:
(i) Prepare and recommend for consideration of the sanggunian the
architectural plan and design for the local government unit or a part
thereof, including the renewal of slums and blighted areas, land
reclamation activities, the greening of land, and appropriate planning of
marine and foreshore areas;
(ii) Review and recommend for appropriate action of the sanggunian,
governor or mayor, as the case may be, the architectural plans and
design submitted by governmental and non-governmental entities or
individuals, particularly those for undeveloped, underdeveloped, and
poorly-designed areas; and
(iii) Coordinate with government and non-government entities and
individuals involved in the aesthetics and the maximum utilization of the
land and water within the jurisdiction of the local government unit,
compatible with environmental integrity and ecology balance;
(4) Be in the frontline of the delivery of services involving architectural
planning and design, particularly those related to the redesigning of
spatial distribution of basic facilities and physical structures during and
in the aftermath of man-made and natural calamities and disasters;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all matters relative to the architectural planning
and design as it relates to the total socio-economic development of the
local government units; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XVI
The Information Officer
Section 486. Qualifications, Powers and Duties.
(a) No person shall be appointed information officer unless he is a citizen
of the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree preferably in
journalism, mass communication or any related course from a
recognized college or university, and a first grade civil service eligible or
its equivalent. He must have experience in writing articles and research
papers, or in writing for print, television or broadcast media of at least
three (3) years in the case of the provincial or city information officer,
and at least one (1) year in the case of municipal information officer.
The appointment of the information officer is optional for the provincial,
city and municipal governments.
The term of the information officer is coterminous with that of his
appointing authority.
(b) The information officer shall take charge of the office on public
information and shall:
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in providing the information and research data required
for the delivery of basic services and provision of adequate facilities so
that the public becomes aware of said services and may fully avail of the
same;
(2) Develop plans and strategies and, upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with public information and research
data to support programs and projects which the governor or mayor is
empowered to implement and which the sanggunian is empowered to
provide for under this Code;
(3) In addition to the foregoing duties and functions, the information
officer shall:
(i) Provide relevant, adequate, and timely information to the local
government unit and its residents;
(ii) Furnish information and data on local government units to
government agencies or offices as may be required by law or ordinance;
and non-governmental organizations to be furnished to said agencies
and organizations;
(iii) Maintain effective liaison with the various sectors of the community
on matters and issues that affect the livelihood and the quality of life of
the inhabitants and encourage support for programs of the local and
national government;
(4) Be in the frontline in providing information during and in the aftermath
of man-made and natural calamities and disasters, with special attention
to the victims thereof, to help minimize injuries and casualties during and
after the emergency, and to accelerate relief and rehabilitation;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all matters relative to public information and
research data as it relates to the total socio-economic development of
the local government unit; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XVII
The Cooperatives Officer
Section 487. Qualifications, Powers and Duties.
(a) No person shall be appointed cooperative officer unless he is a
citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree
preferably in business administration with special training in
cooperatives or any related course from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must
have experience in cooperatives organizations and management of at
least five (5) years in the case of provincial or city cooperatives officer,
and three (3) years in the case of municipal cooperatives officer.
The appointment of the cooperatives officer is optional for the provincial
and city governments.
(b) The cooperatives officer shall take charge of the office for the
development of cooperatives and shall:
(1) Formulate measures for the consideration of the sanggunian, and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of facilities through the development of
cooperatives, and in providing access to such services and facilities;
(2) Develop plans and strategies and, upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with the integration of cooperatives
principles and methods in programs and projects which the governor or
mayor is empowered to implement and which the sanggunian is
empowered to provide for under this Code;
(3) In addition to the foregoing duties and functions, the cooperatives
officer shall:
(i) Assist in the organization of cooperatives;
(ii) Provide technical and other forms of assistance to existing
cooperatives to enhance their viability as an economic enterprise and
social organization;
(iii) Assist cooperatives in establishing linkages with government
agencies and non-government organizations involved in the promotion
and integration of the concept of cooperatives in the livelihood of the
people and other community activities;
(4) Be in the frontline of cooperatives organization, rehabilitation or
viability-enhancement, particularly during and in the aftermath of man-
made and natural calamities and disasters, to aid in their survival and, if
necessary subsequent rehabilitation;
(5) Recommend to the sanggunian, and advise the governor or mayor,
as the case may be, on all matters relative to cooperatives development
and viability- enhancement which will improve the livelihood and quality
of life of the inhabitants; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XVIII
The Population Officer
Section 488. Qualification, Powers and Duties. -
(a) No person shall be appointed population officer unless he is a citizen
of the Philippines, a resident of the local government unit concerned, of
good moral character, a holder of a college degree with specialized
training in population development from a recognized college or
university, and a first grade civil service eligible or its equivalent. He must
have experience in the implementation of programs on population
development or responsible parenthood for at least five (5) years in the
case of the provincial or city population officer, and three (3) years in the
case of the municipal population officer.
The appointment of a population officer shall be optional in the local
government unit: Provided, however, That provinces and cities which
have existing population offices shall continue to maintain such offices
for a period of five (5) years from the date of effectivity of this Code, after
which said offices shall become optional.
(b) The population officer shall take charge of the office on population
development and shall:
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities relative to the integration of
the population development principles and in providing access to said
services and facilities;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with the integration of population
development principles and methods in programs and projects which the
governor or mayor is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(3) In addition to the foregoing duties and functions, the population
officer shall:
(i) Assist the governor or mayor, as the case may be, in the
implementation of the Constitutional provisions relative to population
development and the promotion of responsible parenthood;
(ii) Establish and maintain an updated data bank for program operations,
development planning and an educational program to ensure the
people's participation in and understanding of population development;
(iii) Implement appropriate training programs responsive to the cultural
heritage of the inhabitants; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XIX
The Veterinarian
Section 489. Qualifications, Powers and Duties.
(a) No person shall be appointed veterinarian unless he is a citizen of
the Philippines, a resident of the local government unit concerned, of
good moral character, a licensed doctor of veterinary medicine. He must
have practiced his profession for at least three (3) years in the case of
provincial or city veterinarian and at least one (1) year in the case of the
municipal veterinarian.
The appointment of a veterinarian officer is mandatory for the provincial
and city governments.
(b) The veterinarian shall take charge of the office for veterinary services
and shall:
(1) Formulate measures for the consideration of the sanggunian, and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities pursuant to Section 17 of
this Code;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with the veterinary-related activities
which the governor or mayor is empowered to implement and which the
sanggunian is empowered to provide for under this Code;
(3) In addition to the foregoing duties and functions, the veterinarian
shall:
(i) Advise the governor or the mayor, as the case may be, on all matters
pertaining to the slaughter of animals for human consumption and the
regulation of slaughterhouses;
(ii) Regulate the keeping of domestic animals;
(iii) Regulate and inspect poultry, milk and dairy products for public
consumption;
(iv) Enforce all laws and regulations for the prevention of cruelty to
animals; and
(v) Take the necessary measures to eradicate, prevent or cure all forms
of animal diseases;
(4) Be in the frontline of veterinary related activities, such as in the
outbreak of highly-contagious and deadly diseases, and in situations
resulting in the depletion of animals for work and human consumption,
particularly those arising from and in the aftermath of man-made and
natural calamities and disasters;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all other matters relative to veterinary services
which will increase the number and improve the quality of livestock,
poultry and other domestic animals used for work or human
consumption; and
(c) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
ARTICLE XX
The General Services Officer
Section 490. Qualifications, Powers and Duties.
(a) No person shall be appointed general services officer unless he is a
citizen of the Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a college degree on
public administration, business administration and management from a
recognized college or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in general services,
including management of supply, property, solid waste disposal, and
general sanitation, of at least five (5) years in the case of the provincial
or city general services officer, and at least three (3) years in the case
of the municipal general services officer.
The appointment of a general services officer is mandatory for the
provincial and city governments,
(b) The general services officer shall take charge of the office on general
services and shall:
(1) Formulate measures for the consideration of the sanggunian and
provide technical assistance and support to the governor or mayor, as
the case may be, in carrying out measures to ensure the delivery of basic
services and provision of adequate facilities pursuant to Section 17 of
this Code and which require general services expertise and technical
support services;
(2) Develop plans and strategies and upon approval thereof by the
governor or mayor, as the case may be, implement the same,
particularly those which have to do with the general services supportive
of the welfare of the inhabitants which the governor or mayor is
empowered to implement and which the sanggunian is empowered to
provide for under this Code;
(3) In addition to the foregoing duties and functions, the general services
officer shall:
(i) Take custody of and be accountable for all properties, real or
personal, owned by the local government unit and those granted to it in
the form of donation, reparation, assistance and counterpart of joint
projects;
(ii) With the approval of the governor or mayor, as the case may be,
assign building or land space to local officials or other public officials,
who by law, are entitled to such space;
(iii) Recommend to the governor or mayor, as the case may be, the
reasonable rental rates for local government properties, whether real or
personal, which will be leased to public or private entities by the local
government;
(iv) Recommend to the governor or mayor, as the case may be,
reasonable rental rates of private properties which may be leased for the
official use of the local government unit;
(v) Maintain and supervise janitorial, security, government public
buildings and other real property, whether owned or leased by the local
government unit;
(vi) Collate and disseminate information regarding prices, shipping and
other costs of supplies and other items commonly used by the local
government unit;
(vii) Perform archival and record management with respect to records of
offices and departments of the local government unit; and
(viii) Perform all other functions pertaining to supply and property
management heretofore performed by the local government treasurer;
and enforce policies on records creation, maintenance, and disposal;
(4) Be in the frontline of general services related activities, such as the
possible or imminent destruction or damage to records, supplies,
properties, and structures and the orderly and sanitary clearing up of
waste materials or debris, particularly during and in the aftermath of
man-made and natural calamities and disasters;
(5) Recommend to the sanggunian and advise the governor or mayor,
as the case may be, on all matters relative to general services; and
(c)Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
TITLE VI
LEAGUES OF LOCAL GOVERNMENT UNITS AND ELECTIVE
OFFICIALS
CHAPTER I
Leagues of Local Government Units
ARTICLE I
Liga ng Mga Barangay
Section 491. Purpose of Organization. - There shall be an organization
of all barangays to be known as the liga ng mga barangay for the primary
purpose of determining the representation of the Liga in the
sanggunians, and for ventilating, articulating and crystallizing issues
affecting barangay government administration and securing, through
proper and legal means, solutions thereto.
Section 492. Representation, Chapters, National Liga. - Every barangay
shall be represented in said liga by the punong barangay, or in his
absence or incapacity, by a sanggunian member duly elected for the
purpose among its members, who shall attend all meetings or
deliberations called by the different chapters of the liga.
The liga shall have chapters at the municipal, city, provincial and
metropolitan political subdivision levels.
The municipal and city chapters of the liga shall be composed of the
barangay representatives of municipal and city barangays respectively.
The duly elected presidents of component municipal and city chapters
shall constitute the provincial chapter or the metropolitan political
subdivision chapter. The duly elected presidents of highly-urbanized
cities, provincial chapters, the Metropolitan Manila chapter and
metropolitan political subdivision chapters shall constitute the National
Liga ng mga Barangay.
Section 493. Organization. - The liga at the municipal, city, provincial,
metropolitan political subdivision, and national levels directly elect a
president, a vice-president, and five (5) members of the board of
directors. The board shall appoint its secretary and treasurer and create
such other positions as it may deem necessary for the management of
the chapter. A secretary-general shall be elected from among the
members of the national liga and shall be charged with the overall
operation of the liga on national level. The board shall coordinate the
activities of the chapters of the liga.
Section 494. Ex-Officio Membership in Sanggunians. - The duly elected
presidents of the liga at the municipal, city and provincial levels,
including the component cities and municipalities of Metropolitan Manila,
shall serve as ex-officio members of the sangguniang bayan,
sangguniang panlungsod, sangguniang panlalawigan, respectively.
They shall serve as such only during their term of office as presidents of
the liga chapters, which in no case shall be beyond the term of office of
the sanggunian concerned.
Section 495. Powers, Functions and Duties of the Liga. - The liga shall:
(a) Give priority to programs designed for the total development of the
barangays and in consonance with the policies, programs and projects
of the national government;
(b) Assist in the education of barangay residents for people's
participation in local government administration in order to promote
united and concerted action to achieve country-wide development goals;
(c) Supplement the efforts of government in creating gainful employment
within the barangay;
(d) Adopt measures to promote the welfare of barangay officials;
(e) Serve as a forum of the barangays in order to forge linkages with
government and non-governmental organizations and thereby promote
the social, economic and political well-being of the barangays; and
(f) Exercise such other powers and perform such other duties and
functions which will bring about stronger ties between barangays and
promote the welfare of the barangay inhabitants.
ARTICLE II
League of Municipalities
Section 496. Purpose of Organization. - There shall be an organization
of all municipalities to be known as league of municipalities for the
primary purpose of ventilating, articulating and crystallizing issues
affecting municipal government administration, and securing, through
proper and legal means, solutions thereto.
The league shall form provincial chapters composed of the league
presidents for all component municipalities of the province.
Section 497. Representation. - Every municipality shall be represented
in the league by the municipal mayor of in his absence, by the vice-
mayor or a sanggunian member duly elected for the purpose by the
members, who shall attend all meetings and participate in the
deliberations of the league.
Section 498. Powers, Functions and Duties of the League of
Municipalities. - The league of municipalities shall:
(a) Assist the national government in the formulation and implementation
of the policies, programs and projects affecting municipalities as a
whole;
(b) Promote local autonomy at the municipal level;
(c) Adopt measures for the promotion of the welfare of all municipalities
and its officials and employees;
(d) Encourage people's participation in local government administration
in order to promote united and concerted action for the attainment of
country-wide development goals;
(e) Supplement the efforts of the national government in creating
opportunities for gainful employment within the municipalities;
(f) Give priority to programs designed for the total development of the
municipalities in consonance with the policies, programs and projects of
the national government;
(g) Serve as a forum for crystallizing and expressing ideas, seeking the
necessary assistance of the national government, and providing the
private sector avenues for cooperation in the promotion of the welfare of
the municipalities; and
(h) Exercise such other powers and perform such other duties and
functions as the league may prescribe for the welfare of the
municipalities.
ARTICLE III
League of Cities
Section 499. Purpose of Organization. - There shall be an organization
of all cities to be known as the League of Cities for the primary purpose
of ventilating, articulating and crystallizing issues affecting city
government administration, and securing, through proper and legal
means, solutions thereto.
The league may form chapters at the provincial level for the component
cities of a province. Highly-urbanized cities may also form a chapter of
the League. The National League shall be composed of the presidents
of the league of highly-urbanized cities and the presidents of the
provincial chapters of the league of component cities.
Section 500. Representation. - Every city shall be represented in the
league by the city mayor or in his absence, by the city vice-mayor or a
sanggunian member duly elected for the purpose by the members, who
shall attend all meetings and participate in the deliberations of the
league.
Section 501. Powers, Functions and Duties of the League of City. - The
league of cities shall:
(a) Assist the national government in the formulation and implementation
of the policies, programs and projects affecting cities as a whole;
(b) Promote local autonomy at the city level;
(c) Adopt measures for the promotion of the welfare of all cities and its
officials and employees;
(d) Encourage people's participation in local government administration
in order to promote united and concerted action for the attainment of
country-wide development goals;
(e) Supplement the efforts of the national government in creating
opportunities for gainful employment the cities;
(f) Give priority to programs designed for the total development of cities
in consonance with the policies, programs and projects of the national
government;
(g) Serve as a forum for crystallizing and expressing ideas, seeking the
necessary assistance of the national government and providing the
private sector avenues for cooperation in the promotion of the welfare of
the cities; and
(h) Exercise such other powers and perform such other duties and
functions as the league may prescribe for the welfare of the cities.
ARTICLE IV
League of Provinces
Section 502. Purpose of Organization. - There shall be an organization
of all provinces to be known as the League of Provinces for the primary
purpose of ventilating, articulating and crystallizing issues affecting
provincial and metropolitan political subdivision government
administration, and securing, through proper and legal means, solutions
thereto. For this purpose, the Metropolitan Manila Area and any
metropolitan political subdivision shall be considered as separate
provincial units of the league.
Section 503. Representation. - Every province shall be represented in
the league by the provincial governor or in his absence, by the provincial
vice-governor or a sanggunian member duly elected for the purpose by
the members, who shall attend all meetings and participate in the
deliberations of the league.
Section 504. Powers, Functions and Duties of the League of Provinces.
- The league of provinces shall:
(a) Assist the national government in the formulation and implementation
of the policies, programs and projects affecting provinces as a whole;
(b) Promote local autonomy at the provincial level;
(c) Adopt measures for the promotion of the welfare of all provinces and
its officials and employees;
(d) Encourage people's participation in local government administration
in order to promote united and concerted action for the attainment of
countrywide employment within the province;
(e) Supplement the efforts of the national government in creating
opportunities for gainful employment within the province;
(f) Give priority to programs designed for the total development of the
provinces in consonance with the policies, programs and projects of the
national government;
(g) Serve as a forum for crystallizing and expressing ideas, seeking the
necessary assistance of the national government and providing the
private sector avenues for cooperation in the promotion of the welfare of
the provinces; and
(h) Exercise such other powers and perform such other duties and
functions as the league may prescribe for the welfare of the provinces
and metropolitan political subdivisions.
ARTICLE V
Provisions Common to All Leagues
Section 505. Funding.
(a) All leagues shall derive its funds from contributions of member local
government units and from fund-raising projects and activities without
the necessity of securing permits therefor: Provided, That the proceeds
from said fund-raising projects and activities shall be used primarily to
fund the projects for which the said proceeds have been raised, subject
to the pertinent provision of this Code and the pertinent provisions of the
Omnibus Election Code.
(b) All funds of leagues shall be deposited as trust funds with its
treasurer and shall be disbursed in accordance with the board of
director's resolutions, subject to pertinent accounting and auditing rules
and regulations: Provided, That the treasurer shall be bonded in an
amount to be determined by the board of directors. The funds of a
chapter shall be deposited as chapter funds and funds of the national
league shall be deposited as national funds.
Section 506. Organizational Structure. - To ensure the effective and
efficient administration, the leagues for municipalities, cities and
provinces shall elect chapter-level and national-level boards of directors
and a set of officers headed by the president. A secretary-general shall
be chosen from among the national league members to manage the day
to day operation and activities of the national league. The board of
directors on the chapter or national level may create such other positions
as may be deemed necessary for the management of the chapters and
of the national league. The national board of directors of the leagues for
municipalities, cities or provinces shall coordinate programs, projects
and activities of chapter and the national-level league.
Section 507. Constitution and By-laws of the Liga and the Leagues. - All
other matters not herein otherwise provided for affecting the internal
organization of the leagues of local government units shall be governed
by their respective constitution and by-laws which are hereby made
suppletory to the provision of this Chapter: Provided, That said
Constitution and By-laws shall always conform to the provisions of the
Constitution and existing laws.
CHAPTER II
Leagues and Federation of Local Elective Officials
Section 508. Organization.
(a) Vice-governors, vice-mayors, sanggunian members of barangays,
municipalities, component cities, highly-urbanized cities and provinces,
and other elective local officials of local government units, including
those of the Metropolitan Manila Area and any metropolitan political
subdivisions, may form their respective leagues or federation, subject to
applicable provisions of this Title and pertinent provisions of this Code;
(b) Sanggunian members of component cities and municipalities shall
form a provincial federation and elect a board of directors and a set of
officers headed by the president. The duly elected president of the
provincial federation of sanggunian members of component cities and
municipalities shall be an ex-officio member of the sangguniang
panlalawigan concerned and shall serve as such only during his term of
office as president of the provincial federation of sanggunian members
of component cities and municipalities, which in no case shall be beyond
the term of office of the sanggunian panlalawigan concerned.
Section 509. Constitution and By-laws. - The leagues or federations shall
adopt a Constitution and by-laws which shall govern their internal
organization and operation: Provided, That said Constitution and by-
laws shall always conform to the provision of the Constitution and
existing laws.
Section 510. Funding. - The leagues and federations may derive funds
from contributions of individual league or federation members or from
fund-raising projects or activities. The local government unit concerned
may appropriate funds to support the leagues or federation organized
pursuant to this Section, subject to the availability of funds.
BOOK IV
MISCELLANEOUS AND FINAL PROVISIONS
TITLE I
PENAL PROVISIONS
Section 511. Posting and Publication of Ordinances with Penal
Sanctions.
(a) Ordinances with penal sanctions shall be posted at prominent places
in the provincial capitol, city, municipal or barangay hall, as the case may
be, for a minimum period of three (3) consecutive weeks. Such
ordinances shall also be published in a newspaper of general circulation,
where available, within the territorial jurisdiction of the local government
unit concerned, except in the case of barangay ordinances. Unless
otherwise provided therein, said ordinances shall take effect on the day
following its publication, or at the end of the period of posting, whichever
occurs later.
(b) Any public officer or employee who violates an ordinance may be
meted administrative disciplinary action, without prejudice to the filing of
the appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall transmit official
copies of such ordinances to the chief executive officer of the Office
Gazette within seven (7) days following the approval of the said
ordinance for publication purposes. The Official Gazette may publish
ordinances with penal sanctions for archival and reference purposes.
Section 512. Withholding of Benefits Accorded to Barangay Officials. -
Willful and malicious withholding of any of the benefits accorded to
barangay officials under Section 393 hereof shall be punished with
suspension or dismissal from office of the official or employee
responsible therefor.
Section 513. Failure to Post and Publish the Itemized Monthly
Collections and Disbursements. - Failure by the local treasurer of the
local chief accountant to post the itemized monthly collections and
disbursements of the local government unit concerned within ten (10)
days following the end of every month and for at least two (2)
consecutive weeks at prominent places in the main office building of the
local government unit concerned, its plaza and main street, and to
publish said itemization in a newspaper of general circulation, where
available, in the territorial jurisdiction of such unit, shall be punished by
a fine not exceeding Five hundred pesos (P500.00) or by imprisonment
not exceeding one (1) month, or both such fine and imprisonment, at the
discretion of the court.
Section 514. Engaging in Prohibited Business Transactions or
Possessing Illegal Pecuniary Interest. - Any local official and any person
or persons dealing with him who violate the prohibitions provided in
Section 89 of Book I hereof, shall be punished with imprisonment for six
months and one day to six years, or a fine of not less than Three
thousand pesos (P3,000.00) nor more than Ten thousand pesos
(P10,000.00), or both such imprisonment and fine at the discretion of the
court.
Section 515. Refusal or Failure of Any Party or Witness to Appear before
the Lupon or Pangkat. - Refusal or willful failure of any party or witness
to appear before the lupon or pangkat in compliance with a summons
issued pursuant to the provisions on the Katarungang Pambarangay
under Chapter 7, Title III of this Code may be punished by the city or
municipal court as for indirect contempt of court upon application filed
therewith by the lupon chairman, the pangkat chairman, or by any of the
contending parties. Such refusal or willful failure to appear shall be
reflected in the records of the lupon secretary or in the minutes of the
pangkat secretary and shall bar the complainant who fails to appear,
from seeking judicial recourse for the same cause of action, and the
respondent who refuses to appear, from filing any counterclaim arising
out of, or necessarily connected with the complaint.
A pangkat member who serves as such shall be entitled to an
honorarium, the amount of which is to be determined by the sanggunian
concerned subject to the provisions in this Code cited above.
Section 516. Penalties for Violation of Tax Ordinances. - The
sanggunian of a local government unit is authorized to prescribe fines or
other penalties for violation of tax ordinances but in no case shall such
fines be less than One thousand pesos (P1,000.00) nor more than Five
thousand pesos (P5,000.00), nor shall imprisonment be less than one
(1) month nor more than six (6) months. Such fine or other penalty, or
both, shall be imposed at the discretion of the court. The sangguniang
barangay may prescribe a fine of not less than One hundred pesos
(P100.00) nor more than One thousand pesos (P1,000.00).
Section 517. Omission of Property from Assessment or Tax Rolls by
Officers and Other Acts. - Any officer charged with the duty of assessing
real property who willfully fails to assess, or who intentionally omits from
the assessment or tax roll any real property which he knows to be
taxable, or who willfully or negligently under assesses any real property,
or who intentionally violates or fails to perform any duty imposed upon
him by law relating to the assessment of taxable real property shall, upon
conviction, be punished by a fine of not less than One thousand pesos
(P1,000.00) nor more than Five thousand pesos (P5,000.00), or by
imprisonment of not less than one (1) month nor more than six (6)
months, or both such fine and imprisonment, at the discretion of the
court.
The same penalty shall be imposed upon any officer charged with the
duty of collecting the tax due on real property who willfully or negligently
fails to collect the tax and institute the necessary proceedings for the
collection of the same.
Any other officer required by this Code to perform acts relating to the
administration of the real property tax or to assist the assessor or
treasurer in such administration, who willfully fails to discharge such
duties shall, upon conviction be punished by a fine of not less than Five
hundred pesos (P500.00) nor more than Five thousand pesos
(P5,000.00) or imprisonment of not less than one (1) month nor more
than six (6) months, or both such fine and imprisonment, at the discretion
of the court.
Section 518. Government Agents Delaying Assessment of Real
Property and Assessment Appeals. - Any government official who
intentionally and deliberately delays the assessment of real property or
the filing of any appeal against its assessment shall, upon conviction, be
punished by a fine of not less than Five hundred pesos (P500.00) nor
more than Five thousand pesos (P5,000.00), or by imprisonment of not
less than one (1) month nor more than six (6) months, or both such fine
and imprisonment, at the discretion of the court.
Section 519. Failure to Dispose of Delinquent Real Property at Public
Auction. - The local treasurer concerned who fails to dispose of
delinquent real property at public auction in compliance with the
pertinent provisions of this Code, and any other local government official
whose acts hinder the prompt disposition of delinquent real property at
public auction shall, upon conviction, be subject to a fine of not less than
One thousand pesos (P1,000.00) nor more than Five thousand pesos
(P5,000.00), or imprisonment of not less than one (1) month nor more
than six (6) months, or both such fine and imprisonment, at the discretion
of the court.
Section 520. Prohibited Acts Related to the Award of Contracts Under
the Provisions on Credit Financing. - It shall be unlawful for any public
official or employee in the provincial, city, or municipal government, or
their relatives within the fourth civil degree of consanguinity or affinity, to
enter into or have any pecuniary interest in any contract for the
construction, acquisition, operation or maintenance of any project
awarded pursuant to the provisions of Title Four in Book II hereof, or for
the procurement of any supplies, materials, or equipment of any kind to
be used in the said project. Any person convicted for violation of the
provisions of said Title shall be removed from office and shall be
punishable by imprisonment of not less than one (1) month, nor more
than two (2) years, at the discretion of the court, without prejudice to
prosecution under other laws.
TITLE II
PROVISIONS FOR IMPLEMENTATION
Section 521. Mandatory Review Every Five Years. - Congress shall
undertake a mandatory review of this Code at least once every five (5)
years and as often as it may deem necessary, with the primary objective
of providing a more responsive and accountable local government
structure.
Section 522. Insurance Coverage. - The Government Service Insurance
System (GSIS) shall establish and administer an appropriate system
under which the punong barangay, the members of the sangguniang
barangay, the barangay secretary, the barangay treasurer, and the
members of the barangay tanod shall enjoy insurance coverage as
provided in this Code and other pertinent laws. For this purpose, the
GSIS is hereby directed to undertake an actuarial study, issue rules and
regulations, determine the premiums payable, and recommend to
Congress the amount of appropriations needed to support the system.
The amount needed for the implementation of the said insurance shall
be included in the annual General Appropriations Act.
Section 523. Personnel Retirement and/or Benefits. - An official or
employee of the national government or local government unit separated
from the service as a result of reorganization effected under this Code
shall, if entitled under the laws then in force, receive the retirement and
other benefits accruing thereunder: Provided, however, That such
benefits shall be given funding priority by the Department of Budget and
Management in the case of national officials and employees, and the
local government unit concerned in the case of local officials and
employees.
Where the employee concerned is not eligible for retirement, he shall be
entitled to a gratuity from the national government or the local
government unit concerned, as the case may be, equivalent to an
amount not lower than one (1) month salary for every year of service
over and above the monetary value of the leave credits said employee
is entitled to receive pursuant to existing laws.
Section 524. Inventory of Infrastructure and Other Community Facilities.
(a) Each local government unit shall conduct a periodic inventory of
infrastructure and other community facilities and undertake the
maintenance, repair, improvement, or reconstruction of these facilities
through a closer cooperation among the various agencies of the national
government operating within the province, city, or municipality
concerned.
(b) No infrastructure or community project within the territorial jurisdiction
of any local government unit shall be undertaken without informing the
local chief executive and the sanggunian concerned.
Section 525. Records and Properties. - All records, equipment,
buildings, facilities, and other properties of any office or body of a local
government unit abolished or reorganized under this Code shall be
transferred to the office or body to which its powers, functions, and
responsibilities are substantially devolved.
TITLE III
TRANSITORY PROVISIONS
Section 526. Application of this Code to Local Government Units in the
Autonomous Regions. - This Code shall apply to all provinces, cities,
municipalities and barangays in the autonomous regions until such time
as the regional government concerned shall have enacted its own local
government code.
Section 527. Prior Approval or Clearance on Regular and Recurring
Transactions. - Six (6) months after effectivity of this Code, prior
approval of or clearance from national agencies or offices shall no longer
be required for regular and recurring transactions and activities of local
government units.
Section 528. Deconcentration of Requisite Authority and Power. - The
national government shall, six (6) months after the effectivity of this
Code, effect the deconcentration of requisite authority and power to the
appropriate regional offices or field offices of national agencies or offices
whose major functions are not devolved to local government units.
Section 529. Tax Ordinances or Revenue Measures. - All existing tax
ordinances or revenue measures of local government units shall
continue to be in force and effect after the effectivity of this Code unless
amended by the sanggunian concerned, or inconsistent with, or in
violation of, the provisions of this Code.
Section 530. Local Water Districts. - All powers, functions, and attributes
granted by Presidential Decree Numbered One hundred ninety-eight
(P.D. No. 198), otherwise known as "The Provincial Water Utility Act of
1973," to the Local Water Utilities Administration (LWUA) may be
devolved in toto to the existing local water districts should they opt or
choose to exercise, in writing, such powers, functions and attributes:
Provided, That all obligations of the local government unit concerned to
the LWUA shall first be settled prior to said devolution.
Section 531. Debt Relief for Local Government Units. -
(a) Unremitted national collections and statutory contributions. - All debts
owed by local government units to the national government in unremitted
contributions to the Integrated National Police Fund, the Special
Education Fund, and other statutory contributions as well as in
unremitted national government shares of taxes, charges, and fees
collected by the local government units, are hereby written off in full.
(b) Program loans. -
(1) Program loans secured by local government units which were relent
to private persons, natural or juridical, shall likewise be written off from
the books of the local government units concerned: Provided, however,
That the national government agency tasked with the implementation of
these programs shall continue to collect from the debtors belonging to
the private sector concerned.
(2) Program loans granted to local government units by national
government agencies and which were utilized by the local units for
community development, livelihood, and other small-scale projects are
hereby written off in full.
(c) Settlement of debts due to government financing institutions (GFIs),
government-owned and controlled corporations (GOCCs), and private
utilities. The national government shall assume all debts incurred or
contracted by local government units from GFIs, GOCCs, and private
utilities that are outstanding as of December 31, 1988, in accordance
with the following schemes:
(1) Debts due GFIs. - The national government may buy outstanding
obligations incurred by local government units from government
financing institutions at a discounted rate.
(2) Debts due GOCCs. - The national government may settle such
obligations at discounted rate through offsetting, only to the extent of the
obligations of local governments against the outstanding advances
made by the National Treasury in behalf of the government-owned and
controlled corporations concerned.
(3) Debts Due Private Utilities. - The national government may settle
these obligations at a discounted rate by offsetting against the
outstanding obligations of such private utilities to government-owned
corporation. GOCCs may in turn offset these obligations against the
outstanding advances made by the National Treasury in their behalf.
In the case of obligation owed by local government units to private
utilities which are not indebted to any GOCC or national government
agency, the national government may instead buy the obligations of the
local government units from the private utilities at a discounted rate,
upon concurrence by the private utilities concerned.
(d) Limitations. - Obligations to the Home Development and Mutual Fund
(Pag-ibig), Medicare, and those pertaining to premium contributions and
amortization payments of salary and policy loans to the Government
Service Insurance System are excluded from the coverage of this
Section.
(e) Recovery schemes for the national government. - Local government
units shall pay back the national government whatever amounts were
advanced or offset by the national government to settle their obligations
to GFIs, GOCCs, and private utilities. The national government shall not
charge interest or penalties on the outstanding balance owed by the
local government units.
These outstanding obligations shall be restructured and an amortization
schedule prepared, based on the capability of the local government unit
to pay, taking into consideration the amount owed to the national
government.
The national government is hereby authorized to deduct from the
quarterly share of each local government unit in the internal revenue
collections an amount to be determined on the basis of the amortization
schedule of the local unit concerned: Provided, That such amount shall
not exceed five percent (5%) of the monthly internal revenue allotment
of the local government unit concerned.
As incentive to debtor-local government units to increase the efficiency
of their fiscal administration, the national government shall write off the
debt of the local government unit concerned at the rate of five percent
(5%) for every one percent (1%) increase in revenues generated by such
local government unit over that of the preceding year. For this purpose,
the annual increase in local revenue collection shall be computed
starting from the year 1988.
(f) Appropriations. - Such amount as may be necessary to implement the
provisions of this Section shall be included in the annual General
Appropriations Act.
Section 532. Elections for the Sangguniang Kabataan. -
(a) The first elections for the sangguniang kabataan to be conducted
under this Code shall be held thirty (30) days after the next local
elections: Provided, That, the regular elections for the sangguniang
kabataan shall be held one hundred twenty (120) days after the
barangay elections thereafter.
(b) The amount pertaining to the ten percent (10%) allocation for the
kabataang barangay as provided for in Section 103 of Batas Pambansa
Blg. 337 is hereby reappropriated for the purpose of funding the first
elections mentioned above. The balance of said funds, if there by any
after the said elections, shall be administered by the Presidential Council
for Youth Affairs for the purpose of training the newly elected
sangguniang kabataan officials in the discharge of their functions.
(c) For the regular elections of the sangguniang kabataan, funds shall
be taken from the ten percent (10%) of the barangay funds reserved for
the sangguniang kabataan, as provided for in Section 328 of this Code.
(d) All seats reserved for the pederasyon ng mga sangguniang kabataan
in the different sanggunians shall be deemed vacant until such time that
the sangguniang kabataan chairmen shall have been elected and the
respective pederasyon presidents have been selected: Provided, That,
elections for the kabataang barangay conducted under Batas Pambansa
Blg. 337 at any time between January 1, 1988 and January 1, 1992 shall
be considered as the first elections provided for in this Code. The term
of office of the kabataang barangay officials elected within the said
period shall be extended correspondingly to coincide with the term of
office of those elected under this Code.
Section 533. Formulation of Implementing Rules and Regulations. -
(a) Within one (1) month after the approval of this Code, the President
shall convene the Oversight shall formulate and issue the appropriate
rules and regulations necessary for the efficient and effective
implementation of any and all provisions of this Code, thereby ensuring
compliance with the principles of local autonomy as defined under the
Constitution.
(b) The Committee shall be composed of the following:
(1) The Executive Secretary, who shall be the Chairman;
(2) Three (3) members of the Senate to be appointed by the President
of the Senate, to include the Chairman of the Committee on Local
Government;
(3) Three (3) members of the House of Representatives to be appointed
by the Speaker, to include the Chairman of the Committee on Local
Government;
(4) The Cabinet, represented by the following:
(i) Secretary of the Interior and Local Government;
(ii) Secretary of Finance;
(iii) Secretary of Budget and Management; and
(5) One (1) representative from each of the following:
(i) The League of Provinces;
(ii) The League of Cities;
(iii) The League of Municipalities; and
(iv) The Liga ng mga Barangay.
(c) The Committee shall submit its report and recommendation to the
President within two (2) months after its organization. If the President
fails to act within thirty (30) days from receipt thereof, the
recommendation of the Oversight Committee shall be deemed
approved. Thereafter, the Committee shall supervise the transfer of such
powers and functions mandated under this Code to the local government
units, together with the corresponding personnel, properties, assets and
liabilities of the offices or agencies concerned, with the least possible
disruptions to existing programs and projects. The Committee shall
likewise recommend the corresponding appropriations necessary to
effect the said transfer.
For this purpose, the services of a technical staff shall be enlisted from
among the qualified employees of Congress, the government offices,
and the leagues constituting the Committee.
(d) The funding requirements and the secretariat of the Committee shall
be provided by the Office of the Executive Secretary.
(e) The sum of Five million pesos (P5,000,000), which shall be charged
against the Contingent Fund, is hereby allotted to the Committee to fund
the undertaking of an information campaign on this Code. The
Committee shall formulate the guidelines governing the conduct of said
campaign, and shall determine the national agencies or offices to be
involved for this purpose.
TITLE IV
FINAL PROVISIONS
Section 534. Repealing Clause. -
(a) Batas Pambansa Blg. 337, otherwise known as the Local
Government Code, Executive Order No. 112 (1987), and Executive
Order No. 319 (1988) are hereby repealed.
(b) Presidential Decree Nos. 684, 1191, 1508 and such other decrees,
orders, instructions, memoranda and issuances related to or concerning
the barangay are hereby repealed.
(c) The provisions of Sections 2, 3, and 4 of Republic Act No. 1939
regarding hospital fund; Section 3, a (3) and b (2) of Republic Act No.
5447 regarding the Special Education Fund; Presidential Decree No.
144 as amended by Presidential Decree Nos. 559 and 1741;
Presidential Decree No. 231 as amended; Presidential Decree No. 436
as amended by Presidential Decree No. 558; and Presidential Decree
Nos. 381, 436, 464, 477, 526, 632, 752, and 1136 are hereby repealed
and rendered of no force and effect.
(d) Presidential Decree No. 1594 is hereby repealed insofar as it governs
locally-funded projects.
(e) The following provisions are hereby repealed or amended insofar as
they are inconsistent with the provisions of this Code: Sections 2, 16 and
29 of Presidential Decree No. 704; Section 12 of Presidential Decree
No. 87, as amended; Section 52, 53, 66, 67, 68, 69, 70, 71, 72, 73, and
74 of Presidential Decree No. 463, as amended; and Section 16 of
Presidential Decree No. 972, as amended, and
(f) All general and special laws, acts, city charters, decrees, executive
orders, proclamations and administrative regulations, or part or parts
thereof which are inconsistent with any of the provisions of this Code are
hereby repealed or modified accordingly.
Section 535. Separability Clause. - If, for any reason or reasons, any
part or provision of this Code shall be held to be unconstitutional or
invalid, other parts or provisions hereof which are not affected thereby
shall continue to be in full force and effect.
Section 536. Effectivity Clause. - This Code shall take effect on January
first, nineteen hundred ninety-two, unless otherwise provided herein,
after its complete publication in at least one (1) newspaper of general
circulation.
Approved: October 10, 1991